Antin IP Associate Professorship Launched at Bocconi University12 February 2018
Stefano Gatti will hold the Antin Infrastructure Partners’ Associate Professorship in Infrastructure Finance, that will study a sector with a need of about USD 57 trillion from now to 2030 in order to fill the global infrastructure gap.
Thanks to a five-year agreement and a generous philanthropic donation, the Antin IP Associate Professorship in Infrastructure Finance has been launched today with a Lectio Inauguralis given by the Professorship holder, Stefano Gatti.
In his speech, Prof. Gatti outlined the megatrends poised to affect infrastructure investment in the next 15 years. Recent estimates indicate an infrastructure need of about USD 57 trillion worldwide from now to 2030, with a potentially huge demand for greenfield and brownfield investments and “dry powder” available to infrastructure asset managers reaching an unprecedented USD 156 billion in June 2017.
Historically, infrastructure has been viewed as one of the safest harbors in the universe of alternative investments. The regulation of the various sectors, high barriers to entry, rigid demand, and hedges against inflation were factors that allowed investors to benefit from stable and inflation-linked cash flows for extended periods of time. However, investors and asset managers are becoming increasingly worried about the long-term changes that the sector will experience in the next few years, as the average yield for core infrastructure investments declined by 3-3.5% from 2010 to 2015.
Population dynamics, increasing environmental awareness and urbanization are the megatrends infrastructure investors must factor in. “The infrastructure sector is no longer the monolith it was in the past”, Prof. Gatti said. “Barriers to entry are weaker than in the past and new competitors are challenging incumbents. The increased competition requires that asset managers pay more attention to the quality of management teams in investee firms. Revenue increase and cost optimization are key for ensuring a good, sustainable long-term yield”, Prof. Gatti concluded.
“We are happy to welcome a new international strategic partner such as Antin IP”, said Rector Gianmario Verona. “The partnership crowns a relationship that has already led to significant results in terms of applied research and education in infrastructure investment”. Since academic year 2015-16, Antin IP has been backing the “Structured and project finance” course taught by Prof. Gatti to MSc students.
Mark Crosbie, Managing Partner of Antin IP, commented “We already have strong links with Bocconi, having a number of alumni from the university and having supported the ‘Structured and project finance’ course. We are delighted to formalise the partnership and to be working with Professor Gatti, a leader in his field. We look forward to our collaboration in the coming years which we are sure will be a success.”
Antin IP is a leading independent European private equity firm focused on infrastructure investment. 70 professionals in Paris, London and Luxembourg manage three Pan-European infrastructure investment funds that target controlling stakes in the energy and environment, telecommunication, transportation and social infrastructure sectors.
According to the Antin IP Associate Professorship research plan, over the next five years a group of Bocconi professors coordinated by Prof. Gatti will develop research on topics identified by a think tank composed of Bocconi faculty and Antin IP partners.