BlackRocks decision to launch a London-based debt infrastructure
unit is a precursor to more European institutional
investors investing in project debt.
But the development has sparked debate as to
whether the regions insurers and pension funds will
bypass intermediaries and follow the US model, by hiring
in-house teams to manage their portfolios direct.
Recent reports reveal that 196 private debt funds
are looking to raise $124 billion to invest in infrastructure
globally. But insurers and pension funds are also building up
their internal capabilities.
Some European institutional investors will no doubt
look to hire teams and make investments themselves, Chris
Wrenn, co-head of European infrastructure debt with BlackRock
told IFLR. But in the main, we think most will look to
invest through an intermediary as a...