Document summary
This new study discusses the role of institutional investors in financing infrastructure in emerging markets. The focus has so far been primarily on OECD countries. Developing countries have the greatest infrastructure needs - but also substantial risks and barriers. The current involvement of - domestic and international - pension funds, social security funds, insurance companies, sovereign wealth funds is overall still low. However, interesting examples are found in a range of countries, using a variety of equity, debt and fund instruments. Different models work in different places, depending on the development stage and the political/institutional environment.
There is potential for more. An additional US$ 30-60bn per annum could flow into emerging economies' infrastructure over the next 10 years - if the investment conditions are right.