Why Infrastructure Debt Yield Comes from Scarcity, Not Subordination
Solas Capital and IFM Investors explain why chasing yield in infrastructure debt requires targeting bank-starved niches instead of taking subordinated risk.
Why debt discipline matters as infrastructure’s definition expands
IFM Investors' David Cooper and Solas Capital's Sebastian Carneiro analyze how rapid fundraising growth is pushing sponsors to stretch the boundaries of infrastructure debt. They discuss underwriting criteria for energy-as-a-service models, managing elevated interest rate and refinancing risks, navigating institutional demand across insurers and pension funds, and deploying AI across asset management operations and underlying portfolio assets.
Key takeaways
- Sebastian Carneiro of Solas Capital rejects moving down the capital structure into mezzanine debt, proving that senior debt in bank-neglected niches yields equivalent spreads without junior risk. Read more →
- Solas Capital treats demand-side decarbonization not as corporate credit or venture risk, but as classic infrastructure project finance using bankruptcy-remote Special Purpose Vehicles (SPVs). Read more →
2 articles from this episode
Why Infra Debt Is Underwriting Building Efficiency as Project Finance
Solas Capital's Sebastian Carneiro explains how energy-as-a-service SPVs pool granular building decarbonization assets into low-risk infrastructure debt.
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