2016 was a year that saw more than its fair share of political upheaval. One particularly intriguing consequence, from an investment perspective, is the economic stimulus plan proposed by the incoming Trump administration in the US.
In theory, there seems to be significant opportunities for private infrastructure funds in the identified areas of overhauling existing infrastructure, modernising airports and developing new infrastructure assets. This could increase deal flow for a sector that has, in recent times, struggled to deploy capital at a fast enough rate to match demand.
But what should investors expect from US infrastructure as an investment market? By drawing on data from Pevara, this edition of the Frontline finds a persistent under performance of US infrastructure versus its European counterpart. Is this trend fundamental or technical? Temporary or enduring? What are the tax implications of this scheme? And will funds be able to match their strategies with the assets made available? These are just some of the questions we explore.
As ever, if you have any comments on our analysis, or questions about Pevara, we would be delighted to hear from you.
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