$$$ Going Into Cell Towers, Solar, Data Ctrs

WSJ headline: Money Pours Into Funds Targeting Solar Power, Cell Towers and Data Centers

Sub-headline: KKR, Brookfield and others raise $130 billion this year to invest in businesses that can withstand inflation

By Ben Dummett and Laura Cooper
Aug. 16, 2022 5:30 am ET

https://archive.ph/Y5CIU

Infrastructure funds have raised about $130 billion this year, already outpacing the record of $125 billion set last year, according to Preqin, a data provider. Contributing to that total were a $17 billion fund raised by KKR, a $15 billion equivalent from Brookfield and a $14 billion fund from Stonepeak Partners LP.

Investors include state pension funds from Alaska and New York, as well as other institutions such as China Life Insurance Co. , according to the data provider and documentation from the pensions. Meanwhile Sweden’s EQT AB is aiming to raise the equivalent of $5.2 billion in a new infrastructure fund, touting inflation protection and low volatility as among the fund’s advantages. The fund will invest in core-infrastructure projects, such as utilities and telecom towers.

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Pension funds and insurers have long been attracted to assets such as utilities, toll roads and ports, because their predictable income streams match up well with investors’ longer-term liabilities. While these investments typically offer lower returns than technology and other growth companies, they are usually well-equipped to pass through higher costs to customers. That is a big advantage in the current environment.