From Real Estate into Infrastructure

panta_rhei's picture
Rank: Monkey | 47

Hi,

I guess these two asset classes exhibit many similarities and it seems like sometimes they are even integrated in one division. Is there maybe somebody who could tell if starting in real estate within private equity, it would be easy/possible/consequential to move into infrastructure?

I ask because I am very much interested in both and am going to do a Master in Real Estate, though I think there might be more opportunities in Infrastructure than Real Estate in the future. Would it be still a suited degree?

I would appreciate any oppinions!

Comments (4)

Dec 9, 2008

So, probably not a good idea right now and for a few years. Real estate and infra USED to be covered by the same people. Firms are very rapidly moving to split the two apart due to the fact that they really aren't similar at all. (Look to the recent financial crisis and you might understand)

So your answer is, your degree will be suited only to real estate and pray that real estate comes back. (As an FYI I have been doing real estate PE for the past year and a half).

Dec 9, 2008

Hi and thanks for your reply.

Are there any reasons why real estate should not come back? I mean with current population growth and the whole process of urbanization I just couldn't imagine one..

Do you have an idea, what degree would be better suited to infrastructure then (I don't mean any engineering degree, but in the area of econ/finance)?

Dec 10, 2008

This won't answer your question but I was wondering what makes Infrastructure a viable asset class. With Obama's plans it would seem like a great area to get into but I don't understand how you could achieve returns there. If you fund a tunnel, how do you get your money back? A share of tolls and taxes?

Dec 10, 2008
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