PFI/PPP - The Secondary Market
The PFI/PPP market is now mature and early deals are moving into the next phases of the operative cycle. As a result, the so-called secondary market for PFI/PPP investments is becoming increasingly significant, involving investors in the original project SPV selling their shares in the SPV to financial investors who are attracted by the potential return on investment available over the remaining (usually lengthy) term of the project.
The levels of return in this type of project have been attractive relative to other asset classes and a number of specialist infrastructure funds have been established to exploit this market. Opportunities exist for sophisticated and focused investors to buy into this secondary (and even tertiary) market and an in-depth understanding of financial modeling in PFI/PPP transactions can enable secondary market players to realise significant refinancing gains.
for further information please contact: bill fowler
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