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An investment fund managed by Morgan Stanley Real Estate Investing (MSREI), together with its partner QuinSpark Investment Partners (QuinSpark), today announced the sale of the Pullman Paris Tour Eiffel, a landmark 435 room hotel, to a consortium of investors managed by Batipart Europe. QuinSpark will continue to serve as operating partner to the consortium.

LP appetite for infrastructure is greater than ever – yet it is the mid-market space that particularly stands out for its attractive risk-return profile. With lower entry multiples, less market competition,greater operational agility and more flexible exit options, momentum is truly starting to build for mid-market infrastructure.

A company’s value creation is based on how much its return on invested capital exceeds its cost of capital, the amount it can invest, and how long it can sustain the spread. This report is about the “how long” part, or the competitive advantage period (CAP). We give a history of valuation and strategy, review how analysts value stocks, and argue the life cycle stage informs the valuation approach. We offer guidance for modeling the terminal value and the implied CAP and end with a case study.