As we have highlighted throughout this Report, the term infrastructure captures many different types of opportunities, risks, and returns. Given this, it seems likely that investors are increasingly going to want to discriminate among the groups of assets in which they invest. Funds will likely become more focused on their propositions and specialize in a particular infrastructure type, approach, geography, etc. Having this focus should also help address some of the skill gaps, as it will allow the development of specialist teams. This specialization has already occurred in the PPP market. Much of the investment in renewable energy has been undertaken by specialist funds.
This move to more specialized funds could proceed in tandem with a shift from a reliance on the short-term private equity-type model to much longer term funds, such as the Union of Mediterranean's sponsored InfraMed Fund.7