MSCI launches risk modelling solution to support next phase of private infrastructure investing
MSCI Inc, a provider of critical decision support tools and services for the global investment community, has launched its Private Infrastructure Modeling Service, a new service that will help investors profile the risk of complex private infrastructure holdings and provide data-driven insights to inform investment decisions.
The Private Infrastructure Modelling Service is a response to growing investor demand for private assets. Built using private infrastructure data provided by The Burgiss Group and MSCI Real Estate, the service is designed to give investors the tools and confidence to further expand their private asset portfolios and benefit from the return and diversification potential of private infrastructure investment opportunities. The launch reinforces MSCI’s commitment to provide investors with industry leading knowledge and insight, and builds on the strategic partnership with Burgiss, a market-leading provider of data, analytics and technology solutions for investors of private capital, announced in January 2020.
The new service offers broad coverage in multiple regions for sectors such as utilities, industrials and energy, integrating infrastructure-specific factors with MSCI’s Multi-Asset Class Factor Model. It provides a precise set of exposures, driving transparency and helping to analyse the idiosyncratic nature and complexity of the private infrastructure asset class.
Jorge Mina, Head of Analytics, MSCI, says: “The private asset class has emerged as a critical component in the construction of long-term portfolios. Today, investors are looking at private assets differently, expanding and shifting the role the investments play within a multi-asset class portfolio. While capital inflows to private assets have increased incrementally, investor appetite and confidence has been restricted by a lack of transparency and data. At MSCI, we’re committed to powering better investment decisions and we view this modelling service as a crucial milestone driving the next wave of investor demand for private assets.”
Jay McNamara, President, Burgiss, says: “Today’s announcement signals the strength of MSCI’s and Burgiss’ partnership and displays how our cross-sector expertise can be utilized to provide industry-leading solutions. Burgiss’ data and solutions allow investors to drilldown at a granular level into the performance and exposures of private capital portfolios across asset classes, including infrastructure. This launch forms the first part of wider plans to bring enhanced transparency to private markets and create an investment experience that mirrors public markets. We are committed to meeting client demands and look forward to expanding our product portfolio to encompass additional asset verticals in future.”