Core-plus vs Value-add.

Core-plus infrastructure and value-add are two approaches to investing in

infrastructure projects.

Core-plus infrastructure investing refers to investing in established infrastructure

assets that have a stable cash flow and a low risk profile. These assets typically
provide essential services, such as transportation, energy, or
telecommunications, and have a strong track record of performance. Core-plus
investments are usually made in existing assets that have the potential for some
additional capital investment or operational improvements to enhance their value.

Value-add infrastructure investing, on the other hand, refers to investing in assets

that have the potential for higher returns, but also come with higher risks. Value-
add investments typically involve investing in assets that are not fully developed
or are underutilized, and require significant capital investment and operational
improvements to increase their value. Examples of value-add infrastructure
investments include renewable energy projects, greenfield developments, and
distressed assets.

Overall, core-plus infrastructure investments are generally considered to be

lower-risk, lower-return investments, while value-add infrastructure investments
offer the potential for higher returns, but also come with higher risks. The choice
between the two approaches ultimately depends on the investor's risk tolerance,
investment goals, and overall investment strategy.

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