Infrastructure

Free CFA Level III: Private Markets lesson in Infrastructure. 23 min read, ~3,457 words.

Three revenue regimes: regulated (allowed return on rate base), contracted (PPA or availability payment over 20-30 years), and merchant (spot-market, demand risk). Cash-flow predictability declines across the three. Risk segments: core (operating, contracted, 6-9% IRR), core-plus (8-12%), value-add (12-15%), opportunistic/greenfield (15%+ with construction risk). Greenfield vs brownfield: brownfield is operating...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

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