Dive Brief:
- Infrastructure projects are looking promising for institutional investors at a time when governments seem no more willing or able to finance projects than they have been in recent years.
- S&P issued a report saying that infrastructure could see between 3% and 8% of assets that institutions manage, or $200 billion a year for the next 15 years.
- That is a global picture, however, and U.S. projects will have to compete with needs — and opportunities — around the world to be more profitable investments.
Dive Insight:
The challenge for U.S. governments looking for backers for highway and bridge projects is devising a structure that makes it worthwhile to invest while not looking like a giveaway of public resources. On the side of private investment is that there is no sign that governments will be able to perform the role they used to fill of building what the public needs.