Nuveen Private Bond Chief Scoops Up AI’s ‘Picks and Shovels’

Nuveen LLC's Laura Parrott, head of private bonds, is investing in the foundational infrastructure supporting artificial intelligence, rather than the AI companies themselves. Parrott stated in an interview this week that she is focusing on "boring, plain vanilla" assets that will remain essential regardless of AI's ultimate success or failure. Her strategy involves acquiring debt from companies that provide the physical infrastructure, such as data centers and power grids, which are critical for AI development and deployment. This approach aims to mitigate the volatility associated with direct investments in AI technology companies. Parrott highlighted that the demand for data storage and processing power is expected to grow substantially, making the underlying infrastructure a more stable investment. She believes that the "picks and shovels" of the AI boom, referring to the essential tools and infrastructure, offer a more predictable return profile compared to the speculative nature of AI development itself. Nuveen, a global investment manager with over $1 trillion in assets under management, is actively seeking opportunities in this sector of the credit market.