Boring essential services infrastructure offers alpha
The bull case for investing in core infrastructure and essential services is driven by decades of underinvestment in wastewater, sewers, and utility power alongside growing data demands.
The argument
The guest argued that while AI is the 'sexy' trade, the 'boring' infrastructure world of essential services provides a long runway for growth. He noted that services deal counts have grown tenfold over the past decade, offering integrated business models that can generate alpha.
The thesis, stress-tested
✓ What validates it
- ✓Continued rise in infrastructure services M&A deal volume
- ✓Increased municipal and federal budget allocations for wastewater and sewer upgrades
▸ Risks discussed
- ▸Municipal and regulatory delays in infrastructure spending
- ▸Capital intensity of upgrading decades-old systems
Hear it yourself
"And so we're really excited about not only a core infrastructure, and all this capital is going with the essential services which provide more alpha in these integrated business models."
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