This is Volume I of the I Squared Infrastructure Explained series, which explores how we define, allocate to, and invest in infrastructure.

This is part of the I Squared Infrastructure Explained series, which explores how we define, allocate to, and invest in infrastructure. Infrastructure supports the systems people rely on every day, from energy and transportation to data and logistics. But not all infrastructure offers the same investment characteristics. Across sectors, the opportunity set has expanded beyond traditional assets to include a wide range of essential services and platforms.

At I Squared, we focus on assets that deliver essential services, are positioned to generate dependable income and growth, and hold a defensible competitive position. This position or “moat” can be physical, such as owning a port where there is no alternative port, or contractual, such as holding a long-term government highway concession; either way, it creates a high barrier to entry for competitors.

I Squared’s Infrastructure Equation

Not every essential service is a good investment, in our view. Infrastructure becomes compelling when demand is essential and the economics are protected.

Applying the Infrastructure Equation

The Takeaway For Investors

Not all essential services are strong businesses. While many infrastructure assets are important, their investment quality depends on whether their economics are protected. Focusing on the presence of a moat helps distinguish between businesses with durable, predictable cash flows and those that remain exposed to competition or volatility.

This distinction matters because it shapes how infrastructure behaves as an investment. Businesses defined by essential demand and protected economics can offer a different set of characteristics than more cyclical or sentiment-driven assets. The next question is how these characteristics translate into a portfolio context.

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