Beyond Roads and Railways : The emergence of Value-Add strategies in infrastructure

Sammanfattning

This thesis analyses the development of the financial infrastructure sector, as well as the underlying characteristics of infrastructure investments made by private funds. This is made through a business case, with the purpose of studying a niche sector within private capital where limited previous research exists. We study the company Tampnet, through its journey from being corporately owned, to being owned by three different private funds. We study the differences in infrastructure characteristics in the given time, as well as the differences in ownership. We find that there seems to be a natural shift in infrastructure, where assets are travelling from being riskier to less risky once it matures. Thanks to this, several funds investing in riskier assets can benefit from multiple expansion on the assets, in line with theory on the cost of capital. Furthermore, we find that the infrastructure industry has developed heavily in the last couple of years, extending the definition of an infrastructure asset.