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Hedge Fund, Meet Highway
Article

Hedge Fund, Meet Highway

New investments in infrastructure by private asset managers are changing the way the world finances its cities, power systems, and transportation links.

Julien Courbe and Peter Raymond
Strategy+business, 2016
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Editorial Rating

8

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  • Innovative

Recommendation

There’s an “unlikely romance” brewing between infrastructure projects and private asset management firms. Julien Courbe and Peter Raymond – principals with PwC – examine how a growing number of public infrastructure opportunities with high-yield returns are helping pad investors pocketbooks. But to take full advantage of these opportunities, firms must begin a “significant internal transformation” to address the areas of “location, regulation and digitization.” While never giving financial advice, getAbstract recommends this article to investors and private asset management firms preparing for the future.

Summary

As a growing number of bridge, road and dam projects provide “high-yield returns with relatively low risk,” asset managers are beginning to look favorably on public infrastructure investment opportunities. US-based Blackstone Group Holdings, for example, assembled a group of financiers to put up $120 million for a two-thirds stake after identifying a dam project along Uganda’s White Nile. Blackstone’s “expertise and oversight” fueled the project’s completion. The dam now provides half of all Ugandans with electricity and Blackstone...

About the Authors

Julien Courbe is a principal with PwC, based in New York. Peter Raymond is also a principal with PwC, based in McLean, Virginia.

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