Private Infrastructure Strategy
Private Infrastructure Strategy

Private Infrastructure Strategy


The Private Infrastructure Strategy, managed by Morgan Stanley Infrastructure Partners (MSIP), employs an established, disciplined process to invest in diverse infrastructure assets in predominantly OECD countries and seeks to create value through active asset management and operational improvements.

Investment Approach

Morgan Stanley Infrastructure Partners seeks to pursue a global OECD core-plus strategy by focusing on the acquisition of infrastructure assets with the potential of being turned into core assets, but which, for various reasons, are being operated or managed in a less than optimal manner or where company functions need to be established or rebuilt. MSIP defines these situations as core-plus opportunities, as they allow for significant value creation through operational improvements and can include carve-outs of assets from larger entities, assets being privatized, or generally undermanaged assets requiring capital for organic growth, business development projects, or follow-on acquisitions. MSIP defines core infrastructure assets as mature businesses with long-term performance history, often operating in regulated environments or under concession or other long-term agreements, in many cases with a high degree of predictability and stability.

Global Network for Sourcing and Investing

MSIP's global network for sourcing and investing benefits from Morgan Stanley’s presence in 43 countries, providing access to a very strong network of relationships and proprietary information flows to identify investment opportunities, many of which are not generally available in the public domain.

Experienced Team, Established Process

MSIP benefits from a global team with deep experience in all aspects of infrastructure investing.  A carefully constructed, tested, and disciplined investment process is designed to ensure that investments are reviewed and compared on a global basis.  The size of the global team enables consideration of a large number of opportunities, which are filtered to identify and focus on those with the potential for the best risk-adjusted returns.

Operational Value-add Strategy

MSIP's methodical and intensive approach to asset management has created value for assets in its portfolio of investments.  Such efforts have translated into additional revenues and EBITDA, or have reduced risk. In addition, MSIP has improved the environmental profile of many of its portfolio companies.

Investment Process

MSIP has a well-organized, thorough, and tested investment process. This process is designed to ensure that investments are reviewed and compared on a global basis. MSIP's global scope allows the team to focus on deals that, in its view, offer particularly attractive risk-adjusted returns. Execution of this process is facilitated by the MSIP team's deep experience in all aspects of infrastructure investing.

  • Source through proprietary channels
  • Analyze to determine key characteristics
  • Analyze to determine expected returns
  • Enlist third-party expertise
Portfolio Construction
  • Seek diversification
  • Meet defined thresholds
  • Determine contribution to overall return
Due Diligence & Structuring
  • Dedicated transaction team
  • Review of key risks and assumptions
  • Development of view on value
  • Seek to minimize risks
  • Structure debt financing
  • Negotiate terms of transaction
Investment Review
  • Deal Team
  • Review Team
  • Partners
  • Investment Committee
Investment Decision
  • Submission to Investment Committee
    • Bid Price
    • Select terms and conditions
  • Investment Decision
  • Enhancement of portfolio company management
  • Cost control and rationalization
  • Capex—growth, reinvestment, and technology
  • Economies of scale
  • Financial optimization
  • Operational partnerships
  • Governance, corporate control, and regulatory measures


Brazos Acquired March 2018
Brazos is natural gas gathering and processing and crude gathering service provider located in the Southern Delaware Basin of the Permian Basin.
Red Oak Power Acquired June 2017
Red Oak is an 800 megawatt, baseload, gas-fired power plant located in the Northeastern United States that has been in operation since 2002.
Altán Redes Acquired March 2017
Altán Redes is an international consortium that holds a 20-year concession for the construction and operation of an operator-neutral, nationwide, 4G-LTE network in Mexico.
VTG AG Acquired October 2016
VTG is the largest private wagon hire company in Europe and one of the leading providers of rail and tank container logistics services.
Hornet Midstream Acquired July 2016
Hornet Midstream is a natural gas gathering pipeline system, strategically situated in the core of the Marcellus and Utica shale gas basins.
Ital Gas Storage Acquired August 2015
Ital Gas Storage holds a 40-year concession to convert and operate a depleted gas field in Northern Italy into a regulated gas storage facility.
Eureka Midstream Acquired September 2014
Eureka Midstream is a natural gas gathering pipeline system, strategically situated in shale gas basins of the U.S. Northeast.

Chicago Parking Meters Acquired February 2009
Chicago Parking Meters is the third-largest metered parking system in the U.S., the first and largest asset of its kind to be concessioned under a public-private partnership.

Medical Area Total Energy Plant Exited March 2018
Medical Area Total Energy Plant is the sole provider of essential electricity, steam and chilled water to off-takers in one of the busiest medical zones in the U.S.

Affinity Water Exited May 2017
Affinity Water is the largest regulated water-only company in the U.K. by revenue.
Agorá Investimenti Exited April 2017
Agorá Investimenti is the manager of Venice area airports, the third-largest area in Italy after Rome and Milan.

Madrileña Red de Gas Exited May 2015
Madrileña Red de Gas is the second-largest gas distributor in Madrid and third largest in Spain
Southern Star Exited April 2015
Southern Star is a primary gas transmission/storage facility provider for several major Midwest U.S. cities.
Eversholt Rail Group Exited June 2015
Eversholt Rail Group is one of three leading train-leasing companies in the U.K., with approximately 29% of total current British passenger rail fleet.
Montreal Gateway Terminals Exited March 2015
Montreal Gateway Terminals is the dominant operator at Port of Montreal and second-largest container facility in Canada.
Chicago Loop Parking Exited January 2014
Chicago Loop Parking (CLP) holds a 99-year concession to operate the largest underground parking system in the U.S. in the heart of downtown Chicago.
Saesa Group Exited November 2011
SAESA Group is the second-largest electricity distributor in Chile, serving more than 15% of the country's population through hydro, diesel, and gas electric generation.

Sapphire Holdings Exited November 2009
Sapphire Holdings purchased subordinated-debt from BAA, which, at the time, owned a number of British airports.
Investment Professionals  View Team Details >
Chief Investment Officer, Infrastructure Partners
20 years industry experience
Global Head of Investment Strategy, Infrastructure Partners
26 years industry experience
Asia Pacific Investing, Infrastructure Partners
23 years industry experience
Americas Investing, Infrastructure Partners
30 years industry experience
Senior Advisor, Infrastructure Partners
37 years industry experience
Chairman of Europe, Infrastructure Partners
30 years industry experience


For more information about Morgan Stanley Infrastructure Partners, please contact

Investment Insight
Chicago Parking Meters' Smart Technology System
Dec 02, 2015
Operational improvements by Morgan Stanley Infrastructure Partners, including state-of-the-art technology, made the Chicago on-street parking system number one in the world.
Investment Insight
The Creation of Madrileña Red de Gas
Dec 02, 2015
Morgan Stanley Infrastructure Partners carved out part of an existing utility to create the first standalone gas distribution in Spain, then grew the company to be the third largest in the country.
Investment Insight
Creating Value at a Regulated Asset
Dec 02, 2015
Morgan Stanley Infrastructure Partners worked with Southern Star management to take a strategic approach to growing the business within its regulatory parameters.

As of 09/30/2017. Team information may change from time to time.

Alternative investments are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are suitable only for long-term investors willing to forego liquidity and put capital at risk for an indefinite period of time. Alternative investments are typically highly illiquid – there is no secondary market for private funds, and there may be restrictions on redemptions or assigning or otherwise transferring investments into private funds. Alternative investment funds often engage in leverage and other speculative practices that may increase volatility and risk of loss. Alternative investments typically have higher fees and expenses than other investment vehicles, and such fees and expenses will lower returns achieved by investors.

This is prepared for sophisticated investors who are capable of understanding the risks associated with the investments described herein and may not be appropriate for you.  The information presented represents how the portfolio management team generally implements its investment process under normal market conditions.

All information provided has been prepared solely for information purposes and does not constitute an offer or a recommendation to buy or sell any particular security or to adopt any specific investment strategy. The information herein has not been based on a consideration of any individual investor circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal or regulatory advice. To that end, investors should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.  There is no guarantee that any investment strategy will work under all market conditions, and each investor should evaluate their ability to invest for the long-term, especially during periods of downturn in the market. 

Any views and opinions provided are those of the portfolio management team and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. Furthermore, the views will not be updated or otherwise revised to reflect information that subsequently becomes available or circumstances existing, or changes occurring. The views expressed do not reflect the opinions of all portfolio managers at Morgan Stanley Investment Management or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers.

Diversification does not protect you against a loss in a particular market; however it allows you to spread that risk across various asset classes.  Past performance is no guarantee of future results.

Real estate values are affected by many factors including interest rates and property tax rates, zoning laws, changes in supply and demand, and in the local, regional and national economies.

In the ordinary course of its business, Morgan Stanley engages in a broad spectrum of activities including, among others, financial advisory services, investment banking, asset management activities and sponsoring and managing private investment funds. In engaging in these activities, the interest of Morgan Stanley may conflict with the interests of clients.

Funds of funds often have a higher fee structure than single manager funds as a result of the additional layer of fees. Alternative investment funds are often unregulated, are not subject to the same regulatory requirements as mutual funds, and are not required to provide periodic pricing or valuation information to investors. The investment strategies described in the preceding pages may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability.

A separately managed account may not be suitable for all investors. Separate accounts managed according to the Strategy include a number of securities and will not necessarily track the performance of any index. Please consider the investment objectives, risks and fees of the Strategy carefully before investing. A minimum asset level is required. For important information about the investment manager, please refer to Form ADV Part 2.

No investment should be made without proper consideration of the risks and advice from your tax, accounting, legal or other advisors as you deem appropriate.

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All investing involves risks, including a loss of principal. Alternative investments are speculative and involve a high degree of risk. These investments are designed for investors who understand and are willing to accept these risks. Performance may be volatile, and an investor could lose all or a substantial portion of his or her investment.


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