November 2009 Issue

    Month: November
    Year: 2009

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    The transport challenge

    Investing in transportation infrastructure in China is difficult. But the returns are also potentially compelling, provided you know what you’re getting into writes Chris Josselyn.

    Going long

    What private equity sponsors in US infrastructure Long Term Lease Concessions need to be thinking about. By R. Ronald Hopkinson, E. Eric Rytter and Michael E. Rosado.

    FDOT overcomes

    Does a deal closure in Miami herald better times? Stephanie Kopelousos, the Florida Secretary of Transportation, reflects on a project that went to the brink and back.

    Countdown from 99

    Cezary Podkul examines the deliberations that led to the $1.83bn Chicago Skyway lease being structured as a 99-year concession. Why do other deals seem to be reaching for much shorter lengths?

    On the road to recovery

    Despite the liquidity squeeze, there is still financing out there for credible infrastructure projects. Bankers say the market remains fragile, but they also cite reasons why 2010 might produce a more positive story. Chris Josselyn reports.

    Building a better mousetrap

    Mark Florian went from advising on blockbuster toll road deals for one of Wall Street’s finest to building out an energy infrastructure team at the world’s oldest energy private equity firm. In his first interview since joining First Reserve from Goldman Sachs last year, he tells Cezary Podkul why he made the transition and what he hopes to accomplish at his new employer.

    Infrastructure á la carte: the shape of things to come

    Ryan J. Orr, executive director of Collaboratory for Research on Global Projects at Stanford University, sees changes ahead in how institutional investors will access the asset class: their appetite is still strong, but their tastes have broadened

    The need to build

    On September 29 and 30, many of the most influential figures in North American infrastructure gathered at Infrastructure Investor: New York to discuss the way forward for their industry. Here are five of the most important take-aways.

    A rejection of 2 and 20

    Institutional investors are overwhelmingly opposed to private equity-style compensation structures being applied to infrastructure, according to an Infrastructure Investor survey.

    A pressured seller

    As the UK government attempts to reduce its enormous debts, a couple of infrastructure assets may be available at attractive prices.

    Where only locals dare to tread

    India’s infrastructure needs are great, but the limited track record of foreign investors in the country, combined with cultural differences, have put off many global institutional investors from investing.

    Nobrega’s global vision

    The head of one of Canada’s largest pensions is targeting large-scale assets – with a little help from selected friends.

    Building bridges in the Caucasus

    Where Infrastructure Investor ventures, goodwill follows. What other explanation for a historic agreement signed in October between Armenia and Turkey, which is set to normalise relations between the two countries and bring significant benefits to those involved in infrastructure projects?

    Breaking up is easy to do

    ABN AMRO Global Infrastructure Fund, owner of Belfast City Airport, is the latest fund to spin out from its parent.

    CBI: give nuclear a chance

    Are renewable energy hand-outs in the UK creating an unlevel playing field for investment? Yes, says the Confederation of British Industry (CBI).

    This deal stinks

    Ever heard the expression about pouring money down the drain? In Jefferson County, Alabama, residents are probably all too familiar with it.

    Talking about Gatwick

    Last month’s £1.5 billion sale of London Gatwick Airport to Global Infrastructure Partners was one of the standout infrastructure deals of the year. So much so in fact that when news of the deal broke in the early morning of 21 October, a lot of people had a view on it. Here’s what some of the many interested parties had to say after learning that Britain’s second-busiest airport will have a new owner in December, provided the transaction reaches regulatory closure.