The phrase infrastructure finance gets used a lot, often with subtle but important differences in meaning. Nevertheless, the area is now sufficiently well established that it is possible to make some broad generalisations about how it works, and how it differs from other fields such as private equity.

To begin with, there is the heavy reliance on discounted cash flow modelling. While public investors still tend to rely heavily on multiples of earnings when picking stocks, most infrastructure analysts pride themselves on paying little attention to the price of something in the public markets.