The equity financing of infrastructure companies and assets has gained significant momentum in recent years. Drivers which include rapid urbanization in emerging markets, transition to low carbon economies and governments looking to de-lever their balance sheets have provided significant growth in the private ownership of infrastructure assets and given further breadth and depth to the sector. Based on the RREEF Infrastructure proprietary securities universe, the infrastructure securities market has grown approximately 230 percent since January 1, 2003 as of August 31, 2011. In our view, the growth of the infrastructure securities universe should accelerate as a result of increasing investor awareness and the megatrends and structural drivers propelling the sector. In this paper, we begin by examining drivers of capitalraising by region and sector. Next is a discussion of capital-raising by infrastructure segment – pure-play, core and broad – as well as by investment type, which distinguishes between capital for existing companies and IPOs. Lastly, we examine growth of the sector from a corporate strategy perspective and assess the validity of diversified infrastructure companies seeking to improve focus and achieve value by restructuring. Concluding remarks close the report.
Source : RREEF