Infrastructure IRR Model
10-year yield and exit calculator for physical assets.
Infrastructure joint ventures between US technology providers (e.g., green hydrogen electrolyzers) and GCC sovereign entities demand rigorous, conservative modeling.
This tool provides a rapid assessment of expected Internal Rate of Return (IRR) based on upfront CapEx, stabilized yield, and terminal value multiples over a standard 10-year hold.
The Mathematics of Yield
In mature US assets, infra yield compresses to 4-6%. In GCC greenfield projects (like NEOM or Taweelah), sovereign guarantees can de-risk higher yields (8-11%) to attract Tier-1 global operators.
| Asset Class | Target Yield | Risk Profile |
|---|---|---|
| US Core Telecom | 4.5% - 6% | Low |
| GCC Desalination (PPA) | 7% - 9% | Medium |
| GCC Green Hydrogen Greenfield | 12% - 15% | High |
10-Year Infra Yield Calc
Simplified Cash-on-Cash & IRR Approx
Annual Cashflow
$40.0M
Year 10 Exit Value
$750.0M
Estimated 10Yr IRR
8.7%