Equity Market Analysis 2013

Among the multitude of infrastructure market stakeholders, sponsors/equity investors play a particularly significant role. Equity backing for projects has always been a vital component in developing infrastructure assets, where traditionally industrial construction style companies invest into equity and raise additional funds to cover project costs in the form of project finance debt. This year industrial and construction style companies continue to drive investments in infrastructure; however the role of financial and institutional investors, who possess considerable financial resources necessary to develop and manage large projects on national and cross-national levels, is growing. Post the global financial crisis the equity market has evolved: private equity, pension funds and insurance companies are now taking assets off of construction-phase investors, supplementing increased interest from financial investors. Institutional investor’s presence in the secondary market of operational infrastructure is by now well established, but as their understanding and expertise grows, so too will their role in the primary market investments.

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