Brownfield Investment Investments in existing infrastructure assets that require maintenance, renovation, or expansion.
Brownfield Redevelopment The revitalization or repurposing of previously developed land or buildings for new infrastructure projects.
Brownfield Risk The risk associated with renovating or upgrading existing infrastructure assets, such as cost overruns or delays.
Capital Financial assets or resources that are invested in a business or project.
Cash Flow The net amount of cash generated or consumed by a company during a specific period.
Concession Agreement A contract between a private company and a government entity that grants the private company the rights to operate and manage an infrastructure asset.
Concession Fee Payments made by the private operator to the government entity for the rights to operate and manage an infrastructure asset.
Core Infrastructure Investments in essential infrastructure assets with stable cash flows and low risk, such as toll roads or water utilities.
Deal Sourcing The process of identifying and sourcing potential investment opportunities.
Debt Financing Raising funds by issuing bonds or loans that need to be repaid at a specified time with interest.
Debt Service Coverage Ratio (DSCR) A measure of cash flow available to meet debt obligations, usually expressed as a ratio.
Divestment The process of selling or disposing of an investment or asset.
Due Diligence The comprehensive analysis and research conducted on a potential investment opportunity to assess its viability, risks, and potential returns.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company’s operating performance.
Emerging Market Infrastructure Investments in infrastructure projects in developing economies with high growth potential.
Equity Financing Raising funds by issuing shares or ownership stakes in a company.
Exit Strategy A plan outlining how investors will exit or sell their investment to realize returns.
Fund A pool of capital raised from investors to be invested in various projects or companies.
General Partner Managers of a limited partnership who make investment decisions and have responsibility for the operations and management of the fund.
Green Energy Infrastructure Investments in renewable energy projects, such as wind farms, solar power plants, or hydroelectric facilities.
Greenfield Investment Investments in new or undeveloped infrastructure projects.
Greenfield Risk The risk related to developing new infrastructure projects, including construction delays, cost overruns, and market demand uncertainty.
Infrastructure The physical systems and structures that enable the functioning of a society, including transportation, communication, utilities, and public services.
Infrastructure Debt Debt instruments used to finance infrastructure projects, typically with long tenures.
Infrastructure Gap The difference between the required investment in infrastructure and the funds currently available.
Infrastructure Investment Trust (InvIT) A collective investment scheme that pools funds from investors to invest in infrastructure projects.
Internal Rate of Return (IRR) The discount rate that equates the present value of future cash flows from an investment to its initial capital investment.
Investment The act of allocating capital with the expectation of generating income or appreciation in value.
Limited Partner Investors in a limited partnership who contribute capital but have limited involvement in the operations and management of the fund.
Limited Partnership A business structure where there are one or more general partners who manage the business and limited partners who invest capital.
Liquidity The ease with which an investment or asset can be bought or sold without causing significant price changes.
Material Adverse Change (MAC) Clause A provision in a contract that allows one party to terminate or renegotiate the terms if a significant negative change occurs.
Maturity The length of time until a financial instrument, such as a bond or loan, becomes due.
Private Equity The practice of investing in privately-held companies through the purchase of equity ownership.
Project Bond Debt instruments issued specifically to finance infrastructure projects.
Project Finance The financing of long-term infrastructure projects based on the project’s cash flows, assets, and revenue potential.
Public-Private Investment Fund (PPIF) A partnership between public and private entities to invest in infrastructure projects.
Public-Private Partnership (PPP) An arrangement between a government entity and private sector investors for the development and operation of public infrastructure projects.
Regulated Asset Base (RAB) The total value of a utility company’s assets that is used as the basis for determining allowed returns and tariffs.
Regulatory Risk The risk that changes in regulations or government policies will negatively impact an investment’s returns.
Return on Investment (ROI) A measure of the profitability of an investment, expressed as a percentage of the initial investment.
Risk Allocation The process of assigning risks and responsibilities among project partners in a public-private infrastructure project.
Secondary Market The market where previously issued securities, such as shares or bonds, are bought and sold by investors.
Securitization The process of pooling multiple investments or assets into a financial instrument that can be traded on the market.
Smart Infrastructure Investments in infrastructure assets that incorporate digital technology and data-driven solutions to optimize operations and resource efficiency.
Social Infrastructure Investments in infrastructure projects that provide essential social services like hospitals, schools, and housing.
Term Sheet A non-binding agreement outlining the terms and conditions of a proposed investment.
Valuation The process of determining the worth or market value of a company or asset.
Value Engineering The process of reevaluating and optimizing the design and construction of an infrastructure project to maximize value and reduce costs.
Yield The income generated from an investment, usually expressed as a percentage of the investment’s value.