Public Infrastructure, Private Capital

Felicity Gates, one of the most experienced investors in infrastructure assets, argues that while investors are increasingly allocating to the asset class, they need to understand that successful infrastructure investing is complicated, heterogeneous and very, very long term.

In a fascinating conversation with Privcap, Gates, Partner and Co-Head of Citi Infrastructure Investors, discusses why municipal budget woes won’t necessarily spell deal flow, why public private partnerships (PPPs) take so long to complete, how leverage and swaps hurt infrastructure investments in the downturn, where deal flow is coming from today, where investors are finding room in the portfolio to allocate more to infrastructure, separate accounts, and how not to get involved in a “cost of capital shootout.”