Governments are not the only ones looking for an economic lift from infrastructure projects. With the value of Q1 M&A transactions down a third from the same period last year (Thomson Reuters), deal makers are looking to the U.S. and European infrastructure sector to bring in business, as government stimulus plans begin, and as assets such as airports, docks and parking lots come up for sale.
The relatively steady revenues provided by infrastructure projects over the long term makes them attractive to institutional investors, while large debt loads and government pressure are driving some owners of large infrastructure assets to sell.
"Given their cash-flow profiles, long lives and monopoly-like characteristics, infrastructure assets will continue to be attractive targets in uncertain times for pension funds, infrastructure funds and sovereign wealth funds," say Krista Hill and Phil Symmonds.
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