Government Development Finance Institutions
The investment needed to fund global infrastructure to 2030 is estimated at $57 trillion—but the government entities responsible for most infrastructure development are projected to allocate less than half that amount. This expected funding gap underscores the need for private participation in infrastructure. With its range of risk-return profiles, strong hedges against inflation, and attractive time frames for long-term investors, infrastructure is a compelling asset class for a wide range of investors. Yet, barriers to private investment in public infrastructure remain high. While there have been successes, high-profile failures of public-private partnerships (PPPs) remind investors of their inherent risk. At the same time, the public remains skeptical of private participation in public infrastructure. Our deep experience and understanding of PPPs—including why they succeed and, in some cases, fail—coupled with our knowledge of key investment opportunities, such as energy and water, uniquely positions us to support investors and government entities participating in infrastructure projects.
Regulatory Trends and Market Opportunities
We serve both private and public entities on PPP financing, origination, development, operations, and stakeholder and regulatory management. We assist public entities in framing the case for PPP participation, developing the economic model and risk transfer solution for PPPs, managing PPPs and their various stakeholders, designing and staffing government units to review and manage PPPs, and optimizing the PPP process. Whether serving the public or private sector, we work closely with our clients to build their skills to evaluate and manage PPPs. We supports clients on the following topics:
Venture-Capital Allocation. Our global presence enables us to help clients analyze the risk-adjusted attractiveness of specific geographies, asset classes, and deal types and evaluate the impact of potential opportunities. To ensure the long-term health of the portfolio, we measure opportunities against investor capabilities, risk appetite, and existing portfolio contents. We support clients in assessing partners and developing market-entry strategies.
Financial Regulations. By applying a systematic approach, we help assess the full range of private and public options for funding infrastructure assets. Our proprietary models enable us to identify risk, advise on pricing, and assess risk mitigation approaches and their implications on financing strategy. We also help clients directly link their corporate and business unit strategies to their various financing strategies. Finally, by leveraging our vast network, we can facilitate connections to alternative sources of capital for our clients’ infrastructure projects.
Due Diligence and Transactions. In collaboration with our colleagues from the Corporate Finance practice, we identify and assess investment opportunities that are consistent with our client’s broader strategic objectives. We help clients understand the potential for value creation, including opportunities to improve an asset’s cost position, operating performance, capital project execution, regulatory management and—if possible—opportunities for revenue growth. To support the formation of strong joint ventures, consortiums, and special purpose entities, we advise client on structure, negotiations, and implementation. To ensure the long-term success of an investment, we assist clients in identifying, analyzing, and managing project risk.
Performance Transformation. By applying design-to-value, strategic sourcing, general and administrative benchmarking, lean operations and maintenance practices, and capital project optimization, we help clients improve the operations and overall economics of their assets. We support clients in restructuring and righting delayed and costly capital projects. Our knowledge of key functional topics, such as procurement, project management, risk, and regulation, helps us advise on general contractor negotiations.
Combining deep insights on global macroeconomic trends with proprietary research on market trends, we help clients make strategic choices to increase fund and firm performance, including how to establish competitive positioning, how to adapt investment processes, how to settle on an investment strategy, and how to evolve their governance structure. We also provide support for operational improvement, including risk management and business support functions. Our consultants and experts bring distinctive insights and capabilities when serving institutional investors, helping them navigate shifts in the investment landscape and capture key opportunities.
Asset-backed Development Securities
Our Infrastructure Practice serves investors—including infrastructure funds, pension plans, sovereign wealth funds, insurance companies, banks, development banks, national infrastructure banks, and high-net-worth individuals—throughout the life cycle of an investment. Working closely with colleagues in complementary practices, such as Corporate Finance and Private Equity, our global network of consultants brings deep expertise and innovative analytical tools to each project.