Infrastructure transactions

Investors are increasingly turning to infrastructure funds and building portfolios. They're seeking a countercyclical investment option - but they're also responding to the government's openness to private participation and the public's swelling demand for new infrastructure. In the long term, private equity firms, banks and other financial services institutions should be looking to capitalize on population growth and other factors driving demand for new infrastructure in US and emerging markets.

Executing infrastructure deals, however, includes many inherent risks and complexities and requires careful due diligence and structuring to align deal dynamics with investors' objectives. Many of the questions facing executives tasked with delivering stimulus projects as well as public agency directors responsible for disbursing funds are complex, critical and continuously evolving. For example: 

• Will infrastructure financing options be enhanced by changes or extensions in the qualifications for tax-exempt financing?
• Is the organization steadily progressing toward an integrated approach to accountability, transparency, governance and control throughout the supply chain?
• If speed is critical to the implementation, what extraordinary demands, impacts and collateral outcomes should be anticipated and managed? What mitigating tactics should be employed?
• Have current contract and performance provisions grown obsolete?
• If supporting a major capital project isn't a challenge the organization has undertaken lately, does it have the right organizational framework, systems and controls in place for success?

How PwC can help

PwC's Capital projects & infrastructure team can help investors address these complexities and structure and execute an infrastructure deal to increase success.

For more information, contact Michael McHale, David Hall, Oscar Teunissen, or download our approach.

For more information about our broader M&A services, visit Transaction services or Private equity.