Investors have been anticipating rare opportunities to scoop up infrastructure assets as companies and governments, wrestling with declining economic growth and revenues, decide to sell assets to raise cash. Has money been deployed in the past two years, or is there a lot of cash still sitting on the sidelines?
“Basically, both,” says John Veech, head of Americas investing for Morgan Stanley Infrastructure. “The infrastructure investing community has deployed substantial capital into key infrastructure verticals over the past several years. That said, there is still considerable dry powder available for appropriate transactions.”
Some believe there may be too much capital chasing too few deals, and this will lead to inflated prices, with some funds desperate to get capital invested before they have to return it to their clients. So far, this does not appear