Infrastructure as an asset class has commanded increasing attention from investors and the financial press over the past two years. Major asset sales in the UK – most notably of ports and water utilities such as Thames Water – and ongoing attention on road infrastructure in the United States and Europe – has been met with increased competition for assets, not from ‘trade buyers’ (such as utility companies) but from investment banks and asset managers.

This paper outlines the main features of infrastructure assets; explains the importance of distinguishing between infrastructure assets and infrastructure funds; summarises the key features of the ‘infrastructure fund model’; highlights a range of investment-related concerns with the infrastructure model; describes additional corporate governance concerns with this model; and outlines a series of reform proposals.