Chapter 13

  1. brownfield project
    Investable infrastructure can also be an existing project, or brownfield project, that has a history of operations and may have converted from a government asset into something privately investable.
  2. double taxation
    Double taxation is the application of income taxes twice: taxation of profits at the corporate income tax level and taxation of distributions at the individual income tax levels.
  3. downstream operations
    Downstream operations focus on refining, distributing, and marketing the oil and gas.
  4. evergreen funds
    Unlisted open-end funds, also called evergreen funds, allow investors to subscribe to or redeem from these funds on a regular basis.
  5. excludable good
    An excludable good is a good others can be prevented from enjoying.
  6. gates
    Gates are fund restrictions on investor withdrawals.
  7. greenfield project
    Investable infrastructure can originate as a new, yet-to-be-constructed project, referred to as a greenfield project, which was designed to be investable.
  8. intangible assets
    Intangible assets are economic resources that do not have a physical form.
  9. intellectual property
    Intellectual property (IP) is an intangible asset that can bei owned, such as copyrighted artwork.
  10. investable infrastructure
    Investable infrastructure is typically differentiated from other assets with seven primary characteristics: (1) public use, (2) monopolistic power, (3) government related, (4) essential, (5) cash generating, (6) conducive to privatization of control, and (7) capital intensive with long-term horizons.
  11. midstream operations
    Midstream operations and midstream MLPs - the largest of the three segments - process, store, and transport energy and tend to have little or no commodity price risk.
  12. negative costs
    Negative costs refer not to the sign of the values but to the fact that these are costs required to produce what was, in the predigital era, the film's negative image.
  13. present value of growth opportunities (PVGO)
    In corporate finance, present value of growth opportunities (PVGO) describes a high value assigned to an investment based on the idea that the underlying assets offer exceptional future income.
  14. privatization
    When a governmental entity sells a public asset to a private operator, this is termed privatization.
  15. public-private partnership
    A public-private partnership (PPP) occurs when a private sector party is retained to design, build, operate, or maintain a public building (e.g., a hospital), often for a lease payment for a prespecified period of time.
  16. regulatory risk
    Regulatory risk is the economic dispersion to an investor from uncertainty regarding governmental regulatory actions.
  17. unbundling
    In recent years, there has been an increased interest in unbundling IP from corporations and permitting it to be purchased as a stand-alone investment.
  18. upstream operations
    Upstream operations focus on exploration and production; midstream operations focus on storing and transporting the oil and gas.
Card Set
Chapter 13
Operationally Intensive Real Assets