Since 2008, Preqin’s Infrastructure Online service has reported over 6,600 deals with a significant 85% defined as economic infrastructure deals, worth an estimated aggregate deal value of $1.3tn. Economic infrastructure describes a group of facilities within a country that facilitates business activity, including communication, transport, distribution networks and energy supply systems, among others.
As the chart above shows, the dominant region in terms of total economic infrastructure deals completed is Europe (41%). With regards to individual countries, the largest number of economic infrastructure deals has taken place US, representing 21% of deals completed between 2008 and 2015 YTD, closely followed by the UK (18%). Additionally, this trend is replicated in aggregate deal value for economic infrastructure deals, with the US ($254bn) ahead of the UK ($210bn).
In terms of industry, renewable energy associated assets, which include wind power, solar power, hydro power, geothermal power and biomass/biofuel facilities, represent a significant 41% of all economic infrastructure deals completed between 2008 and 2015 YTD. This is closely followed by deals in the utilities sector, which account for 19% of economic infrastructure deals in this period, and transport transactions (18%).
A number of notable transactions have taken place in the economic infrastructure market since 2008. The largest deal in this period was ACS Group and Zachry’s $30bn acquisition of I-69 Trans Texas Corridor project. In 2015, Cheung Kong Infrastructure Holdings fully acquired Eversholt Rail Group in a deal worth $3.5bn from 3i Infrastructure PLC, Morgan Stanley Infrastructure Partners and STAR Capital Partners.