Actionable Ideas for Companies and Sponsors
Infrastructure Funds Becoming Major Acquirors Across a Broad Range of Sectors
Dedicated Infrastructure funds raised over $100 billion in 2018 and are on record to match this fundraising in 2019. These funds have amassed over $500 billion of dedicated capital and are aggressively seeking acquisition opportunities across a broad range of sectors. The definition of Infrastructure has broadened dramatically from its traditional core focus on transportation (airports, ports, railroads, toll roads), and contracted assets like midstream energy pipelines and power assets. Infrastructure funds are now focused on a broad range of companies that provide essential services with high barriers to entry and relatively stable cash flows, preferably (though not always) with some degree of asset intensity. This broader definition of infrastructure now touches a large cross-section of industries, including renewable energy, logistics, route-based services, educational services, asset leasing, data centers, cell towers, healthcare services facilities, cold storage facilities and parking facilities. Significant transactions have been completed by Infrastructure funds in most of these areas, and owners of businesses in these sectors that are considering sale should focus on Infrastructure funds as credible and highly competitive potential buyers.