Private Equity Infrastructure Funds
ISBN
978-3-030-38738-9
Type
book section
Date Issued
2023-07-24
Author(s)
Editor(s)
Douglas Cumming
Benjamin Hammer
Abstract
Private equity infrastructure funds (PEIFs) can take the form of listed, open-end, or closed-end funds. Listed funds are traded on a stock exchange and can issue new shares or buy back existing shares at any time. In the context of open-end and closed-end funds, investors sign a partnership agreement and provide capital as so-called limited partners to the managers of PEIFs, defined as general partners. More specifically, open-end funds continuously issue and redeem shares in response to changes in investor demand and, hence, allow investors to commit and remove capital over an infinite lifetime. In contrast, closed-end funds have a finite lifetime of on average 7 to 12 years, with the option to extend the investment period for another short-term period of usually up to 3 years (Haran et al. 2020). Despite the long-term time horizon of the underlying assets, closed-end funds are the dominant type of funds giving investors access to a diversified portfolio of infrastructure assets.
Language
English (United States)
HSG Classification
None
Book title
The Palgrave Encyclopedia of Private Equity
Publisher
Palgrave Macmillan