Chapter 13

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.

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.

Downstream operations focus on refining, distributing, and marketing the oil and gas.

Unlisted open-end funds, also called evergreen funds, allow investors to subscribe to or redeem from these funds on a regular basis.

An excludable good is a good others can be prevented from enjoying.

Gates are fund restrictions on investor withdrawals.

Investable infrastructure can originate as a new, yet-to-be-constructed project, referred to as a greenfield project, which was designed to be investable.

Intangible assets are economic resources that do not have a physical form.

Intellectual property (IP) is an intangible asset that can bei owned, such as copyrighted artwork.

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.

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.

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.

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.

When a governmental entity sells a public asset to a private operator, this is termed privatization.

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.

Regulatory risk is the economic dispersion to an investor from uncertainty regarding governmental regulatory actions.

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.

Upstream operations focus on exploration and production; midstream operations focus on storing and transporting the oil and gas.