Publications

- January 1, 2019: Vol. 12, Number 1

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All infrastructure is local: Getting a P3 deal done in the United States often means working with state and local governments unfamiliar with the process

by Tyson Freeman

The U.S. infrastructure market must drive institutional investors nuts. Here is a sprawling investment opportunity laid out in the richest country in the world. A market packed with all types of institutional-sized assets and projects in a broad range of sectors that would kick off attractive yields for decades. But then reality sets in.

Far from a single market, the public control of these assets results in a highly fragmented market with such high levels of political vagary that private investors find it near impossible to consistently win and execute projects. Each deal — along with all the typical deal challenges — resides in its own world with a unique regulatory and political climate. There are efforts being made on many levels to address some of the issues caused by such a jumble of jurisdictions. But it is this idiosyncratic — and ultimately risky — landscape that has kept P3 project volume relatively low.

Mary Scott Nabers, president and CEO of Strateg

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