Private Equity companies (think KKR, Blackstone Group, Thomas H Lee, Cerebus, etc) are stepping up to purchase United States highways, airports, public utilities, and other infrastructure properties. The Deal Journal interviews Mayer Brown partner John Schmidt to discover how private equity ownership of U.S. roads might be good news for construction projects and taxpayers.
Posted by Heidi N. Moore
Government is good for some things: collecting taxes, national security, entertaining election-year posturing and grandstanding.
But one thing government is not good at is managing public infrastructure: toll roads, airports, public utilities. That’s why private equity firms are raising billions of dollars to take over those assets. Kohlberg Kravis Roberts made a typically bold strike by hiring Lazard investment banker George Bilicic, whose reputation as a star investment banker will help KKR as it raises a $10 billion fund. Today, Pennsylvania is accepting final bids from private equity firms bidding to privatize the Pennsylvania Turnpike. Governor Ed Rendell has said he will announce the winner on Monday.
To make sense of why private equity guys in shiny suits are suddenly so eager to fill our nation’s potholes, Deal Journal talked to Mayer Brown partner John Schmidt, who is representing Pennsylvania in its plan to privatize the roadway.
Read the interview with Deal Journal and Mayer Brown partner John Schmidt about Private Equity Funding US Infrastructures.
Learn about KKR on Hoovers.
Heller Ehrman Talking Merger with Mayer Brown.
Bio for Lazard leader Bruce Wasserstein.
Private equity companies KKR and the Blackstone Group look to Lehman for investment opportunity
Read recent news about top private equity companies Blackstone Group, THL, KKR, Brentwood, General Atlantic, and the Carlyle Group.
Private Equity giant the Blackstone Group, founded by Steve Schwarzman, goes public.
Lazard CEO Bruce Wasserstein interviewedabout Deal Making by the HBR.
View Mayer Brown press releases.
View press releases for Kohlberg Kravis Roberts.
