1st Edition

Infrastructure as Business The Role of Private Investment Capital

By James McKellar Copyright 2024
    282 Pages 58 B/W Illustrations
    by Routledge

    282 Pages 58 B/W Illustrations
    by Routledge

    Infrastructure as Business brings new emphasis and clarity to the importance of private investment capital in large-scale infrastructure projects, introducing investors, policymakers, and other stakeholders to a key element that is surprisingly absent from the discourse on public-private partnerships. Despite the importance of modernizing infrastructure across the globe, governments often face challenges in securing the necessary capital to meet future need, as well as developing policy to meet these goals. Explaining the structure of the private investment universe and flow of private capital in such projects, this book ambitiously aims to bridge this "infrastructure gap" by elucidating shared terminology, conceptual frameworks, and an alignment of goals and objectives between public and private sectors—essential to meet increasing environmental, social, and governmental requirements for infrastructure in coming years.

    • Appropriate for graduate-level courses in real estate, public policy, and urban planning that focus on infrastructure, project finance, and procurement and delivery models such as PPPs.
    • Provides a clear understanding of private investment and PPPs to the investment community as well as professionals in real estate, project finance, and related fields, who often learn mostly on-the-job and from colleagues.
    • Equips government officials and policymakers with key terms and concepts needed to "sit across the table" with private financers and explore opportunities for private capital investment in early project stages.
    • Outlines communication strategies for both public and private sectors, which will increasingly need to collaborate to address climate change, respond to new technologies, and develop efficient ways to deliver services.

    Written to engage academic, private investment, and public policy/governance audiences alike, Infrastructure as Business: The Role of Private Investment Capital invites discussion and opens doors to advancing new business models, with international applications, to offer increased value for private investors as well as more efficient, flexible funding for innovative infrastructure development in the future.

    1. Defining Infrastructure.  2. What We Learn from History.  3. Who Owns Infrastructure.  4. Addressing the Infrastructure Gap.  5. Challenges in Moving Forward.  6. The Appeal of Real Assets.  7. Investing in Infrastructure.  8. Infrastructure as Business.  9. Elements of the Business Model.  10. Infrastructure Business Models.  11. The Global Market for Infrastructure Investments.  12. The Flow of Infrastructure Capital.  13. Perspectives on the Investment Industry.  14. Public Finance Challenges.  15. What is Sustainable Infrastructure.  16. Global Landscape of Climate Finance.  17. ESG and Responsible Investing.  18. Greenfield Project.  19. Challenges in Project Delivery.  20. Investing in Emerging and Frontier Economies. 21. Financing Infrastructure in Developing Countries. 22. Non-tangible Infrastructure Assets. 23. The Need for Creativity and Innovation. 24. Conclusion. Now and into the Future 


    Professor Emeritus James McKellar, Brookfield Centre in Real Estate and Infrastructure, Schulich School of Business, York University, was Associate Dean, External Relations and former Director of the Brookfield Centre. Prior to joining York University, he was a faculty member at the Massachusetts Institute of Technology (MIT) and served as the first Director of the Center for Real Estate at MIT. In addition to MIT, he held faculty appointments at the University of Pennsylvania and the University of Calgary.

    Professor McKellar has a life‐long involvement in the real estate industry and has consulted to businesses and governments in many parts of the world on real estate matters covering housing, development, finance and investment, asset management, and market performance. His recent work focuses on infrastructure in the context of private investment, rapid urbanization, population growth, and sustainable infrastructure, particularly in emerging economies where new technologies, new business models and socio-cultural factors play a significant role. He is actively involved in the Sustainable Infrastructure Fellowship Program announced in June 2018 to coincide with the G7 held at Quebec City, Canada. He has been involved in strategic issues related to real estate and infrastructure in both the private and public sectors. As principal of McKellar Associates Ltd., he specialized in strategic issues related to real estate and infrastructure.

    "Infrastructure is perhaps the fastest growing asset class, but it remains relatively immature and poorly understood.  This book provides valuable insights into evolution of the asset class, the perspectives of the main stakeholders and the opportunities and challenges for the future. 

    Over the past 15 years, Infrastructure has emerged as an important asset class for institutional investors. Despite this, the asset class remains relatively immature with many aspects poorly understood. In this context this book provides valuable insights into infrastructure investing, from the perspectives of investors, governments and, most critical of all, the users and beneficiaries of the asset class"

    Dr Peter Hobbs

    Managing Director, Head of Private Markets



    "James’ book is a valuable contribution to the growing literature on infrastructure businesses. Successfully utilizing private capital is an imperative for governments looking to build and maintain their evolving infrastructure needs and this book enriches our understanding of what the private sector seeks out when assessing infrastructure investments. Public stakeholders, students, industry professionals and anyone else keen for infrastructure will enjoy reading this book."

    Aaron Vale, CFA, CAIA
    Managing Director, Co-Head of Indirect Infrastructure

    CBRE Investment Management


    "Given the growing realisation that the quality of infrastructure is absolutely key to every country’s aspirations, James McKellar’s work is not only timely but also spot on: just as much as there is an ‘infrastructure gap’, there is a ‘knowledge gap’ between the public and private on how to successfully prepare, procure, fund, finance, operate and maintain the type of future-ready infrastructure people expect. McKellar’s work makes great strides in helping to close that gap."

    Matthew Jordan-Tank

    Director, Sustainable Infrastructure Policy and Project Preparation, European Bank for Reconstruction and Development (EBRD)

    "James’ perspective on the flow of capital into infrastructure is both refreshing and needed.  Understanding how to access private sector creativity and risk-taking is crucial to addressing the most vexing problems in infrastructure today.  The challenge to the public sector is to find ways to harness the natural profit-seeking motivation of the private sector in the service of the public interest.  The potential exists cross the globe and the returns to both the public and private sector can be immense and simultaneous." 

    Stephen C. Beatty

    Global Chairman (Non-Exec), Infrastructure and Chairman, Global Cities Center of Excellence

    KPMG in Canada