The recent launch of H.R.L Morrison & Co’s Public Infrastructure Partnership Fund (PIP Fund) has intensified the debate over whether private sector funding should be used to develop public infrastructure projects. Supporters of public private partnerships (PPPs) and public finance initiatives (PFIs) refer to the success of such programs internationally as an effective source of capital for the development of much-needed public projects such as schools and hospitals. However, opponents argue PPPs and PFIs place an unnecessary financial burden on taxpayers.
Despite the concern, the number of infrastructure funds investing in PPP/PFI opportunities is certainly growing, with 39 infrastructure funds currently on the road that will seek exposure to such initiatives. Prominent funds currently in market that will look to invest in PPPs and PFIs include Macquarie European Infrastructure Fund III and aAIM Infrastructure Fund, as well as the New Zealand-based PIP Fund. These funds plan to invest in a variety of PPP/PFI projects in various sectors including education facilities, senior homes and healthcare.
For more information on infrastructure funds and the types of assets being targeted, please click here to learn more about our Infrastructure Online service and the new 2009 Preqin Infrastructure Review.