How to finance your infrastructure project
Will PPP or PFI projects really cover the gap? No. Will pension funds come to the rescue? In part, surely. Yawn!
The real interest lies in what the utilities, operators and developers are thinking. The squeeze on credit is impacting everybody and these previously largely autonomous financers of infrastructure projects are now actively seeking investment partners from GPs and LPs alike (point and case: EDF, who will be speaking at the Infrastructure Investment World Europe Summit in November, have recently announced they are actively seeking investment partners to share the burden of their nuclear plants). The answer therefore surely lies in the co-investment model, the mantra of with a little bit of help from our friends we’ll all get by could prove hugely beneficial over the next few years!
Ok, so “friends” may be a little strong and does the co-investment model just pose more questions….
- What are the benefits of spreading the risks with multiple investment partners?
- How can LPs help utilities ease the constraints of capital, whilst allowing operators to maintain control over technical management?
- Can utilities provide the long term capital for projects that infrastructure funds find too risky?
- Does arranging partnerships between corporate and LPs present a new business opportunity for investment banks?
Well hopefully YIELCO, Swiss RE, Allianz , Duff & Phelps and Altius can shed some light on the above, they’ll be joining EDF, Balfour Beatty and Hochtief for the second main day at the IIWE2012 summit to discuss these very questions.