The Great Deception: Making BIP's $10 NAV $38

BIP's investment portfolio is its only source of value. All equity, thus NAV, must be derived from it. No magic, no mystery. Yet value is seldom discussed. Why is that?

Photo by Filip Andrejevic on Unsplash

Management both defends IFRS carrying values as accurate when necessary or convenient while simultaneously encouraging investors to use metrics that imply units are worth multiples of IFRS NAV.

Both cannot be true.

Full report here, summary below.

The Great Deception Bip Final

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• Valuation War: The battle over BIP’s value isn’t a debate—it’s a war. The IFRS book value NAV of $10/unit contradict the $27 to $42 estimates pushed by investors and the sell-side. Trading at 3.2x NAV, BIP’s inflated multiple is the foundation of its business model, in our view. We believe losing it would be catastrophic.

• Management’s Dangerous Game: Management defends IFRS values while guiding investors toward metrics that suggest units are worth multiples of NAV. We see this as a dangerous obfuscation of reality, creating a false dichotomy around valuation.

• Portfolio is the Only Real Value: BIP’s value lies solely in its investment portfolio—mostly stakes in PE funds. The equity of individual positions sums to NAV. It’s straightforward: no portfolio, no value.

• Sell-Side Illusion: Supporters of BIP promote wildly inflated NAV estimates, in our view, with no grounding in reality. Their models ignore the portfolio, rely on incomplete financial data, and use flawed valuation techniques. This isn’t analysis—it’s financial fiction.

• Time for Transparency from Management: Sam Pollock needs to start openly discussing the value of individual positions and the portfolio as a whole. Brookfield provides this transparency to other co-investors—why not BIP? Investors deserve clarity, not silence.

DISCLAIMER

This report represents the opinions of Keith Dalrymple and Dalrymple Finance on Brookfield Infrastructure Partners. It is an opinion piece and should not be taken as investment advice of any kind. This is not an offer to sell or a solicitation of an offer to buy any security, nor shall any security be offered or sold to any person, in any jurisdiction in which such offer would be unlawful under the securities laws of such jurisdiction.

BIP’s webpage provides the names of sell-side analysts and firms that provide research coverage. The firms and analysts listed are in the business of providing investment advice to individual and institutional investors. We strongly encourage those seeking investment advice to consult one or more of the sell-side research firms listed.

The report is based on publicly available information and due diligence Dalrymple Finance believes to be accurate and reliable. However, it is presented “as is” without warranty of any kind, whether express or implied. Dalrymple Finance makes no representation, express or implied, as to the accuracy, timeliness, or completeness of any such information or with regard to the results to be obtained from its use. This report contains a large measure of analysis and opinion. It is subject to change without notice.

Following the publication of this report we intend on continuing to transact in the securities. We may be long, short or have no position at any time. That position may change at any time.

We are investors with the goal of profiting from our research. You should assume that as of the publication date, that Dalrymple Finance, Keith Dalrymple and/or affiliates have a position in related securities. We and affiliates have a vested financial interest in entity discussed in this report.

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