Munich-headquartered CEPRES and the German Association for Alternative Investments (BAI) have partnered to set up a joint infrastructure information platform.
The initiative is primarily geared to provide investors with more transparent and comprehensive data on an asset class they sometimes deem young and hard to access, according to both organisations.
“The necessity to make the asset class as such easier to understand and therefore easier to invest, follows from the increasing need of institutional investors for infrastructure investments. However, without valid information regarding return and risk characteristics of the asset class this undertaking cannot succeed,” explained Frank Dornseifer, BAI’s managing director, in a statement released today.
The platform will draw on the data CEPRES has collected since inception on more than 2,000 infrastructure transactions to guide investors’ decisions, most notably in the area of risk management. Both CEPRES – which has data on more than 240,000 private transactions – and BAI derive their ambition from what the statement described as their “long-lasting and in-depth experience in the area of alternative investments”.
But the initiative also potentially provides its champions with more effective ways to lobby, in the form of data put forward to the European Insurance and Occupational Pensions Authority (EIOPA). The regulatory body is currently in the process of weighing the risks attached to investing in infrastructure as it drafts the details of its Solvency II equity requirements rules.
“For this purpose the BAI stays in permanent and close dialogue with EIOPA,” the statement said.
A final ambition of the joint venture is to attract new members – typically fund managers willing to grow their visibility among capital owners – as well as gather more qualitative insights on the market via in-depth questionnaires sent to industry practitioners.