The infrastructure sector has been the object of growing interest over the past few years:

  • an increasing number of institutional investors are developing their exposure to this asset class, in the form of both capital and debt instruments, attracted by  its decorrelation from  the general economic  situation and by the absence of competitive risks
  • public authorities are increasingly relying on the private sector to offset budgetary  constraints, but also to achieve better operational performance by managing construction deadlines and costs, developing commercial revenues and improving service quality
  • an active secondary market has rapidly developed to take advantage of portfolio restructuring implemented by several large construction or concession groups

 

In this sector, the success of a deal often depends on the ability to negotiate a transaction structure that balances the different objectives of public authorities, equity investors and creditors via:

  • allocation of risks between the different stakeholders based on their ability to effectively manage them
  • predictable and balanced tariff regulation ensuring  a fair return on capital and providing incentives to private investors
  • governance that allows private investors to control operational management within the boundaries defined by public authorities
  • a financing structure that is sufficiently robust to enable growth and endure economic downturns

The Gimar & Cie team can leverage significant skills to fully assist clients in the design and execution of transactions they are considering:

  • broad M&A advisory  experience in both international and local projects
  • extensive knowledge of the economics of the different sub-sectors, including airports, motorways, rail, public transportation, utilities, etc.
  • close relationships with the most active investors in the sector, enabling in-depth  understanding of their requirements and goals
  • ability to analyse risks and benefits from both the shareholder and creditor perspective by developing extensive  valuation models
  • significant experience in the negotiation of deal structuring

 

Gimar & Cie advises both:

  • industrial operators and financial investors:
    • by helping them source proprietary opportunities thanks to its extensive network of contacts and deep knowledge of the markets
    • by supporting them for execution with a view to closing the deal under the best conditions based on in-depth analysis of the risks and optimal negotiation of the structure
  • public authorities:
    • by optimising the structure of the proposed transaction so as to expand the scope of interested investors
    • by extensively promoting the opportunity  to key  decision-makers of  relevant international investors targeted on the basis of precise specifications for meeting the transaction objectives, defined in the Terms of Reference

by providing transparent and effective management of the disposal process to enable investors to complete a  full analysis of the proposed opportunity