Private Equity Financing in Infrastructure and Real Estate

This book provides a comprehensive overview of Private Equity (PE) financing in the infrastructure and real estate sectors. In doing so, it analyzes the impact of such investments in the two sectors, evaluates the types of financing strategies, and explores the value created by such investments. Infrastructure and Real Estate have emerged as a significant asset class for PE investors. In the last three decades, PE firms have invested significant amounts of capital in infrastructure and real estate - sectors which did not feature in their radar before 2000. Between 2000 and 2009, PE firms invested more than USD 200 billion in infrastructure. Real estate sector also witnessed investments of a similar scale as that of infrastructure. Fundraising for infrastructure and real estate was about USD 100 billion and USD 150 billion respectively in 2019, setting new records and reaching all-time highs. This book examines such PE investments - both at a global level and at an emerging economy level, to identify how PE firms have created an impact with their investments, to provide both ready capital and value-addition to sectors which seem to urgently need both.

The book is divided into three sections - impact of PE investments, strategies used by PE firms, and value created by such investments. The findings of this research and the corresponding best practices are useful and applicable to students, academicians, researchers, financial institutions, policy makers and law makers, commercial banks and funding agencies, practitioners, the Government, and other parties who are directly or indirectly associated with the development of infrastructure and real estate; and could aid funding agencies, practitioners and policy makers who are directly responsible for creating and developing infrastructure and real estate for their economies.

Auteur

Thillai Rajan A. is Professor at the Indian Institute of Technology Madras, Chennai, and founder of YNOS Venture Engine CC Private Limited. An Associate at the Mossavar-Rahmani Centre for Business and Government, Harvard Kennedy School, Harvard University, his teaching and research areas include corporate finance, project and infrastructure finance, public private partnerships and venture capital. He obtained his PhD from the Indian Institute of Management Bangalore and has received international research grants from organizations such as DFID, 3iE, and AusAID. His research has been published regularly in national and international journals, most notable among them being the India Venture Capital & Private Equity Report series, Utilities Policy, Venture Capital, Energy Policy, Journal of Private Equity, ASCE Journal of Construction Engineering and Management, Development Policy Review, and The Journal of Development Effectiveness.

Josephine Gemson is Associate Professor at the King's University College at Western University, Canada. She received her graduate degree in Finance from the University of Strathclyde, Glasgow, UK and her PhD from the Indian Institute of Technology Madras. She has published her research in several international journals such as Venture Capital: An International Journal of Entrepreneurial Finance, Journal of Private Equity, Journal of Structured Finance, Utilities Policy, and Public Works Management & Policy. She teaches subjects in finance, economics, and accounting, and her research interests include corporate finance, private equity, and project and infrastructure finance.

Contenu

Introduction.- The Need for Innovative Financing.- Impact of Private Equity Financing.- Strategies of Private Equity Financing.- Value Creation of Private Equity Financing.- Conclusion.