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Home | News | Paper by Aleksandar Andonov published in The Review of Financial Studies
News | June 23, 2021

Paper by Aleksandar Andonov published in The Review of Financial Studies

The article “Institutional Investors and Infrastructure Investing" by research fellow Aleksandar Andonov (University of Amsterdam) has been published online in The Review of Financial Studies.

Paper by Aleksandar Andonov published in The Review of Financial Studies
Abstract

Institutional investors expect infrastructure to deliver long-term stable returns but gain exposure to infrastructure predominantly through finite-horizon closed private funds. The cash flows delivered by infrastructure funds display similar volatility and cyclicality as other private equity investments, and their performance similarly depends on quick deal exits. Despite weak risk-adjusted performance and failure to match the supposed characteristics of infrastructure assets, closed funds have received more commitments over time, particularly from public investors. Public institutional investors perform worse than private institutional investors. ESG preferences and regulations explain 25%–40% of their increased allocation to infrastructure and 30% of their underperformance.

View publication here.

Article Citation:
Aleksandar Andonov, Roman Kräussl, Joshua Rauh, “Institutional Investors and Infrastructure Investing”, The Review of Financial Studies, published online April 2021, doi.org/10.1093/rfs/hhab048.