Since the early 2000s, private infrastructure investing has gathered interest from institutional investors. This trend continues to accelerate as governments can no longer afford to build the roads, schools, hospitals, waste and water treatment plants, power distribution grids, etc. that are required for a successfully functioning economy. It is estimated that more than $50 trillion will be spent in new infrastructure development across Canada by 2030.
The California Public Employees' Retirement System has formed a US$500-million infrastructure partnership with UBS Global Asset Management.
Connor, Clark & Lunn Infrastructure has invested in the 5.5-megawatt Sakwi Creek Hydro Project, located just northwest of Agassiz, B.C.
Samsung Renewable Energy and Connor, Clark & Lunn Infrastructure have created a partnership to provide equity funding for the 100-megawatt Kingston Solar Project, which is among the largest solar projects in North America.
The Canadian Life and Health Insurance Association released a report that makes recommendations on how businesses and governments can work together to build the infrastructure this country needs.
The Canada Pension Plan Investment Board has invested in India's infrastructure sector.
The Desjardins Group Pension Plan and Innergex Renewable Energy have acquired a Quebec hydroelectric facility.
A relatively new asset class, infrastructure is growing and seeing more segmentation—a process that offers Canadian investors an increasing number of opportunities both at home and abroad.
U.S. municipal bonds open up access to infrastructure
Life is a highway, but so is institutional investing—literally. More pension plans are investing in infrastructure and real estate as a means of diversifying their portfolios.