Private equity sees gold mine in potholes
Source: By Jonathan Keehner, Reuters, Thu Aug 30, 2007 1:35PM EDT
Private equity firms suddenly short on big buyout targets are revisiting an elusive goal -- the privatization of infrastructure.
The crumbling network of roads, ports and bridges have previously intrigued private equity, but a political backlash derailed a wave of anticipated deals sparked by the Chicago Skyway lease for $2 billion in 2005.
Cash-strapped states might now reconsider their aversion, especially if private equity firms are willing to spend as enthusiastically for infrastructure assets as they were before a credit crunch made public markets unreceptive to them.