March 2010 Issue
Betting on Africa
Morgan Stanley Infrastructure’s joint venture with Egyptian firm Orascom Construction is set to be a long-term marriage seeking to capitalise on Africa’s massive infrastructure needs.
'In need of major investment’
Citadel Capital, the Cairo-based private equity firm, recently announced plans to invest up to $400m over the next two years in a range of sectors in East Africa, including infrastructure. InfrastructureInvestor caught up with the firm’s founder and chairman Ahmed Heikal to get the low-down on where the money will go and why – below is an excerpt of the interview.
Curb your enthusiasm
Investors should think carefully whether parking belongs in their portfolio – and at what price.
Paradise calling
The Maldives wants to develop its infrastructure – expect plenty of help to be forthcoming.
Foreign capital welcome
As it seeks to bolster economic growth, Colombia is open to expert outside assistance in developing its infrastructure. Cezary Podkul spoke to Luis Guillermo Plata, minister of trade, industry and tourism, to find out more about the country’s priorities.
Fiddling the figures (a little)
No one seems to have told disgraced fund manager Simon Treacher that if a job’s worth doing, it’s worth doing properly.
Now the real work starts
In October last year, Brazil learnt that in 2016 it would become the first Latin American country to play host to the Olympic Games – having two years previously been awarded the 2014 soccer World Cup. The two events should provide a much-needed boost to infrastructure investment in a region where economic boom and bust has dented ambitions in the past.
Astronomical capital needs
Why NASA is calling on private capital.
Building Brazil
A perennial economic ‘might-have-been’ is finally growing strong. Now it needs better infrastructure. David Snow reports
Macquarie’s Mexican roots
With Mexican pensions beginning to embrace alternative investments, Macquarie’s already on the ground with cash in hand, evaluating opportunities. Cezary Podkul takes a look at how the organization has made its presence felt and ponders how quickly others will follow
Asia’s not all about growth
The Asian growth story is easy to explain. But translating it into a viable infrastructure investment thesis is a more complex task. In attracting $860m to a recent fundraising effort, Philip Jackson, chief executive of JPMorgan’s Asian infrastructure fund, appears to have done just that. He tells Cezary Podkul how.
When roads take a toll
Toll road projects have left many investors with burnt fingers. But should this result in the avoidance of such assets, or simply a healthy dose of realism in business plans?
A bubble in the making
Plans to give stimulus-inspired bonds a longer lifespan could create strong demand among institutional buyers.
Getting that sink feeling
London’s mayor finds an unusual way of criticising the city’s tube PPP
Letter from Abu Dhabi: Different strategies, different shades
Abu Dhabi Investment Authority wants to increase its execution and managerial capabilities for real estate investments. Don’t expect a similar attitude towards private equity and infrastructure
Moving out of the comfort zone
The concessions unit of Austrian construction firm Strabag had a busy 2009 as it won the group’s largest ever deal – a road PPP – and struck out of its core market at a time when many of its peers were just happy to survive. Roland Jurecka, head of the concessions business, tells Bruno Alves how the company has been coping with the downturn and how a lack of opportunities close to home has encouraged an adventurous spirit
Pension funds: Going the direct route
Pensions have gained increasing confidence that they can invest in infrastructure assets without intermediation from GPs
Fund managers: This is not private equity
Why the attempt to impose high fees and carry was doomed to failure once it was clear infrastructure would not neatly fit the private equity template after all
Lawyers: Putting out fires
A tough market for infrastructure practitioners has demanded new skills of legal advisers
Advisers: Why bankers are still bullish
The need for governments to monetise assets has triggered a hiring spree in the advisory community
Governments: Easing the risk transfer
Necessary pragmatism has seen governments reaching for their cheque books
Developers: Living in a world without debt
Tougher financing conditions have prompted some abrupt strategic u-turns
Heading in a new direction
Amid the turbulence of recent times, infrastructure investment professionals have been challenged to do things differently in order to survive and prosper. Through the eyes of six different types of participant, we identify the key transformational developments – the “game changers” – which have altered the way investment in the asset class is approached. By Bruno Alves, Cezary Podkul and Andy Thomson