Rav Sangha, Vice President at Macquarie Asset Management, joined Zoe Hunt, Host of RIA Channel, to discuss investment opportunities in infrastructure and the firm’s infrastructure debt strategy.
Sangha highlights Macquarie’s more than 30 years of infrastructure investing experience and approximately $250 billion in assets under management across infrastructure equity and debt. He explains that this experience has helped the firm build a substantial network of operators, owners, developers, and advisors, which provides access to significant deal flow and allows the team to be highly selective. Macquarie also draws on nearly 400 infrastructure investment professionals globally to critically evaluate assets and underwrite risks.
Sangha believes infrastructure debt is at an inflection point as a gap emerges for alternative lenders with the breadth and scale to provide financing. With global infrastructure funding requirements forecast to exceed $100 trillion through 2040, he also points to structural themes driving opportunities across infrastructure, including digitalization and energy security.
For investors, Sangha highlights income and diversification as two key portfolio benefits of infrastructure. When selecting a manager, he encourages investors to consider experience across multiple cycles, access to proprietary deal flow, underwriting capabilities, and monitoring and workout capabilities. He adds that Macquarie seeks bilateral, off-market transactions where it can control the structure, dictate terms, and ensure appropriate protections are in place for investors.
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