Anthony Foxx, the former US transportation secretary, has joined a new division of real estate company Related Funds Management to invest in businesses that build and provide services for infrastructure assets.
Foxx’s move to the private sector comes after more than 10 years of public service as head of the US Department of Transportation and mayor of Charlotte, North Carolina. He’s teaming up with private sector infrastructure veteran Andrew Right to launch Related Infrastructure.
The business is a new venture for Related Funds Management, which has raised more than $5 billion for investments in real estate strategies as part of Related Companies, a property business with more than $50 billion in assets managed or under development.
Foxx and Right will lead Related Infrastructure, which could include raising a fund to make investments in companies that provide services for infrastructure construction, a Related Funds Management spokesperson said. This will include platforms that develop and manage transportation-related assets, municipal assets and companies providing infrastructure-related businesses, services and technologies.
“Secretary Foxx and Andrew Right bring a unique set of complementary skills to Related Infrastructure,” said Justin Metz, managing principal of Related Fund Management. “Their combined public, private and investment perspectives make them the ideal leaders for this new business.”
In 2013, President Barack Obama appointed Foxx as Secretary of Transportation. Until 2017, he managed a federal department with a $70 billion budget, placing $30 billion of federal grant assistance throughout the country. During his tenure, Foxx helped pass a five-year surface transportation bill – the Fixing America’s Surface Transportation Act.
Right previously founded private equity firm Cherry Lane Capital and served as a member of the team that formed the Infrastructure Investment group at Goldman Sachs. He was most recently a presidential executive fellow, counsellor to the transportation secretary and acting executive director of the Build America Bureau.
In a 2016 interview with Infrastructure Investor, Foxx said: “I’m tired of seeing America have these major projects that need to happen, that involve assets that people need to get to work, to get to school, or in some way to use for their livelihood […] To see these projects not happen, when we could be tackling them is something that bothers me.”