This note is part of the Pier Review reference material.
In new hands
Airports, roads, power stations, hospitals: in most western countries a generation ago, assets of this kind were owned by branches of national and local government. Now it is quite common for them to be owned and operated by private sector companies.
Typically they are constructed by well known contractors with venerable histories. Once they are demonstrably up and running, they are typically sold to specialist funds that have been established to invest in them. [1]
Banks, law firms and large accountancy practices have assembled teams to serve this industry, and there also exist boutique firms that work exclusively in this field.
Project finance
To raise the money to pay for new infrastructure as it is constructed, these experts deploy techniques that were pioneered decades earlier in the oil & gas and mining industries, and which are known as project finance.
Specialists in project finance think about their investments in infrastructure in a distinctive way. Pier Analysis draws on 40 years of experience in the field to apply that mind set to the examination of well known companies.
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Notes
Examples of funds specialising in international infrastructure assets.
Picture: Dominik Probst