Each real asset sub-sector is unique but what they have in common is that consistent market and asset inefficiencies make price discovery difficult and require operational expertise to unlock value.

Real Estate

• Opportunities exist to invest across the capital structure, with a focus on risk-adjusted returns
• Lease escalators and replacement costs make cash flows and asset values positively correlated to CPI

Energy & Minerals

• Core energy and industrial commodities are positioned to benefit from global demand growth
• Operationally complex and capital intensive business models limit new entry and reward proven operators

Infrastructure

• Substantial need to upgrade and develop global infrastructure, while fiscal constraints make private or public-private partnerships increasingly attractive
• Operationally complex and capital intensive assets with potentially monopolistic economic characteristics

Timber/Agriculture

• Staple input/consumption assets with lower economic sensitivity
• Marginal demand for agricultural products highest in low income populations experiencing significant economic growth