Wednesday, 9 September 2020

Reasons for Direct Infrastructure Investment

Today many of the larger infrastructure investors develop their portfolios by moving away from unlisted funds to direct infrastructure investment strategies. In order to achieve greater control of the assets held in their portfolios, these investors rely heavily on direct infrastructure investment.



Another major advantage of direct infrastructure is that investors can avoid expenses associated with large funds. This trend has also resulted in larger infrastructure fund targeting the highest profile opportunities, leaving opportunity in the infrastructure middle market space. Owners are now looking for a direct and sophisticated way to own infrastructure assets with turn-key management in place. Aviation infrastructure and on airport service providers are perfect examples of direct infrastructure opportunities.

While aviation infrastructure requires capital resources, many opportunities exist at smaller regional and general aviation airports. The characteristics of these opportunities are similar to others in the infrastructure space—real assets, with long lives, low risk of disruption and high barriers to entry. Most on airport infrastructure opportunities and service businesses benefit from significant long term leases, many of which are greater than 30 years.

Direct Aviation Infrastructure:

Ownership strategies focus in the following points are as:

     Core infrastructure such as terminals

     Ancillary facilities such as fuel farms and parking decks

     Airport service businesses, such as FBOs, MROs and ACM

     Third party facility development

 

Aviation Infrastructure Management Challenges: 

Owners who engage professional management teams realize the best outcomes due to:

     Professional managers with proven track records

     Management experience across economic cycles

     Depth and breadth of management capabilities

     Industry leading operational & financial reporting

These are some of the keys to direct aviation infrastructure investment and ownership. If you are an aviation asset owner looking to maximize the value of your holdings, consider engaging a professional aviation manager today.

Contact Us

Global Aviation Infrastructure LLC

Website: https://www.aviationinfrastructure.com/    

Call: +1 (843) 412-6881 

No comments:

Post a Comment