If you were a wealthy investor, would you buy the Brooklyn Bridge? The answer would be yes. No, this is no scam but that’s what attracts the wealthy as bridges and wind mills can provide steady long-term returns and offer a safer alternative than equity and government bonds. Apart from this some rich individuals can also turn to infrastructure for the moral satisfaction of promoting a country’s infrastructure, or building up their social or environmental credentials but given the returns ranging from 12% to 18%, private-equity type investments, may seem unattractive in the context of the equity market. To set such a trend, much of the credit goes to the recent financial downturn that demonstrated the robustness of infrastructure. For the individuals with deep pockets, the trend is just starting to emerge and definitely will see improvements in the years to come with more “concrete” investments.
Via: WSJ/ The Globe and Mail
