Infrastructure Funds On The Rise

Originally published in ReNew Canada, January/February 2008.

The Macquarie Group, headquartered in Australia, was one of the first to recognize the opportunity for private sector investment in infrastructure assets back in 1996. Now, more than 10 years later, this trend is exploding.

Private equity firms are establishing specialized infrastructure funds or groups. Goldman Sachs has committed more than US$6.5 billion in capital to its first infrastructure fund. The Carlyle Group has raised its first US$1.2 billion infrastructure fund, which will invest in transport and water projects in Canada and the U.S. Carlyle also formed a US$685 million renewable energy infrastructure fund with Riverstone Holdings. Morgan Stanley established an infrastructure group and announced that it was establishing an infrastructure fund. In February 2007, it agreed to acquire a significant interest in two Montreal