What are infrastructure funds primarily used for?

Infrastructure funds are primarily used for investments in public infrastructure projects. These funds focus on financing the construction and maintenance of essential infrastructure, such as transportation systems (roads, bridges, and airports), utilities (water, electricity, and telecommunications), and other critical facilities that support economic activity and societal needs.

Investing in public infrastructure is crucial because these projects often require significant capital and long-term commitment. Infrastructure funds typically provide the necessary capital and expertise to develop large-scale projects that may not be appealing to traditional private investors due to their lengthy payback periods or complexity.

Given the focus on public infrastructure, the other choices do not align as closely with the primary purpose of infrastructure funds. While private investments in businesses may occur, they are not the core focus of these funds. Similarly, infrastructure funds do not exclusively fund government agencies nor are they primarily designed to support technology startups. Instead, their main objective remains the enhancement and expansion of public infrastructure to support economic development and improve the quality of life for communities.