U.S. infrastructure will get $21 billion for new investment as part of a larger $1.3 trillion spending bill passed and signed into law by President Donald Trump on March 23.
For private equity investors, there is a provision that will allow business development companies, which are investment companies backed by private equity, to leverage $2 for every $1 of assets they own, an increase over the current $1 for $1 formula.
Ryan Lynch, an analyst at Keefe, Bruyette & Woods, tells Bloomberg News, “This would be the biggest change this industry has seen. Game changer may be too strong, but this is definitely very significant.”
The bill also allocates $8.7 billion for highways, roads and bridges, including $45 billion from the Highway Trust Fund to spend on federal highways, a $1 billion increase from fiscal 2017 levels. Investment in rural broadband expansion will get an increase of $625 million, and $248 million has been allotted to strengthen electric grid security.
Details of the infrastructure investment program can be found here.
