US-Based Infrastructure Deals – November 2013

by Julia Goodall

  • 27 Nov 2013
  • INF

The annual number of US-based infrastructure deals completed by infrastructure fund managers has increased steadily over the past few years, rising from 43 in 2009, to 77 in 2012. To date in 2013, 63 deals have already been completed in US-based infrastructure assets, and this number is expected to rise as more information come to light in the coming months. The average deal size for US infrastructure deals has fluctuated in recent years. In 2009 the average deal size was $603mn, then in 2010 it dropped considerably to just $371mn, and again in 2011 to $341mn. In 2012 however, the average deal size increased to $540mn. The average size of US-based infrastructure deals made in 2013 to date is $445mn. These figures indicate positive momentum in the US infrastructure market, showing that infrastructure fund managers continue to make deals in the US and are able to complete sizeable transactions.

Looking at a breakdown of US infrastructure deals made in 2013 by project stage, 70% have been in assets at the secondary stage of development, 27% have been in greenfield projects, and just 3% were in brownfield projects. This indicates that the majority of US-focused infrastructure fund managers are favouring less risky, already operational assets. However, the proportion of managers that are willing to take on the construction risk associated with greenfield projects is quite sizeable.

Several notable US-based infrastructure deals have been made to date in 2013 by infrastructure fund managers, including the acquisition of Magnolia, a natural resources refinery based in Louisiana, by Stonepeak Infrastructure Partners and Liquefied Natural Gas in July. The total deal size was $2.2bn, which bought a 100% stake in the asset. In April, a consortium of investors including Kiewit Corporation, Macquarie Infrastructure and Real Assets (MIRA), Massman Construction, Parsons and Weeks Marine, acquired Goethals Bridge in New York for $1.5bn.

Significant past US-based infrastructure deals include the $45bn acquisition of Energy Future Holdings in 2007 by a consortium of investors including Energy Capital Partners, and the 2006 acquisition of Kinder Morgan in a transaction worth $22bn by a consortium of fund managers including Highstar Capital, GS Infrastructure Partners, Carlyle Group, and Riverstone Holdings.

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