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titleKey Points
  • Equity investment: With infrastructure companies, 'equity' must include shareholder debt.
  • Debt Investment: Term loans and bonds are the only relevant infrastructure debt instruments to consider. 

The unit of account (UoA) is the level of aggregation at which an asset is recognised for the purpose of the valuation exercise, that is, whether assets are valued in aggregate or at the individual-instrument level.

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  • Whole unlisted infrastructure equity (WIE): For the purpose of valuing the equity investment in unlisted infrastructure companies, equity (including so-called pin-point equity) can be aggregated with quasi-equity stakes like shareholder loans, which may represent the largest part of the capital investment made by the firm's owners.
  • Senior private infrastructure debt (SID): For the purpose of valuing private infrastructure senior debt, individual instruments can be aggregated to the extent that the level of credit risk is comparable for all senior instruments, and contractual cash flows can be aggregated without losing information about individual maturity dates and interest rates in the valuation process.instruments, loans or bonds, are considered as investible assets. Revolving and other credit facilities are not considered. 
  • Junior private infrastructure debt (JID): Junior or so-called mezzanine debt instruments that are neither quasi-equity nor debt instruments with a senior claim on the firm's free cash flows are not aggregated and can be valued separately.

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This is especially the case in very active markets such as the UK, the US, or the European Union.