Social Infrastructure Finance and Institutional Investors. A Global Perspective

42 Pages Posted: 18 Mar 2020 Last revised: 1 Apr 2020

Date Written: March 18, 2020

Abstract

Social infrastructure has endured a long period of neglect in most developed and emerging countries, with chronic underinvestment exposed by the coronavirus crisis 2020. Private sector investment in social infrastructure has widely fallen back over the last decade - this in contrast to economic infrastructure. One of the outcomes of the last global (financial) crisis 2007/08 was a slow revival of economic infrastructure policies, and a growing involvement of institutional investors.

This is the first, more systematic account of social infrastructure investment from an international perspective, leading to several key conclusions. The public sector will remain the dominant funding and financing source. Nonetheless, much more private capital could flow with more clarity on social assets and projects, given their very diverse specific characteristics. There are various investment strategies that can realistically be improved and expanded. Sustainability, impact and SDG investing open a new door for asset owners.

Keywords: social infrastructure, infrastructure investment, infrastructure finance, public-private partnerships, institutional investors, pension funds, infrastructure policy

JEL Classification: E22, F21, G15, G18, G22, G23, G28, H54, H57, L9, O16, O18, R31

Suggested Citation

Inderst, Georg, Social Infrastructure Finance and Institutional Investors. A Global Perspective (March 18, 2020). Available at SSRN: https://ssrn.com/abstract=3556473 or http://dx.doi.org/10.2139/ssrn.3556473

Georg Inderst (Contact Author)

Inderst Advisory ( email )

4 Evangelist Road
GB London, NW5 1UB
United Kingdom

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