Global Infrastructure Vol. IV
By Fulbright & Jaworski LLP
The complete report can be found online at www.fulbright.com in the News section.
Synopsis: According to the report, many assumptions about infrastructure investment have been tested during the current financial crisis. Economic trends have revealed that infrastructure seems to be more correlated to the economy than realized. The recession and job losses have caused people to use roads and buy items less frequently, which has affected traffic at seaports, for example.
“The highly leveraged model of many early investments has also been tested with some assets experiencing ownership succession,” the report notes. “Transactions currently under way are more weighted to equity, and availability payment revenue structures are very much in favor.”
Despite a poor economy and changes in infrastructure investment performance, investors continue to allocate capital to the asset clas