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Infrastructure & Economic Development

The United States has the potential to become the largest P3 market in the world, given the sheer size of its infrastructure”  "Two inter-related trends are at work that could cause P3 activity to expand: the need to upgrade, replace or build out essential infrastructure assets and the inability of governments to finance these current and future infrastructure investments entirely on their balance sheets."

-Moody’s Investors Service

McKinsey estimates that $57 trillion of infrastructure investment is needed by 2030 to support economic growth expectations, worldwide. A big chunk, $23.8 trillion, will be for transportation-related projects: roads ($16.6 trillion), rails ($4.5 trillion), seaports ($0.7 trillion) and airports ($2 trillion).

The situation in the U.S. is no different: Investing in American Infrastructure is not an option, is a necessity! This is the take away of the 9th North American Infrastructure Leadership Forum, held in San Francisco in October 2017, with 500+ executives gathered to discuss infrastructure development in the U.S., Canada, and Mexico, while facilitating business and promoting projects across the region. Funding Infrastructure requires engaging private equity and innovative funding mechanisms in all relevant sectors, i.e. Roads, Bridges, Rail & Mass Transit, Airports, Waterways & Ports, Free Trade Zones and Inland Ports, Water & Wastewater, Electricity, Oil & Gas, Renewable Energy, Energy Transmission & Distribution Networks, Broadband, Data-Centers & Satellite Networks, Social & Welfare Assets (including Affordable Housing), Health Assets, Education & Community Assets.

As Fortress Investment Group has noted publicly, an estimated $3.6 trillion will be required to repair existing infrastructure in the U.S. Much of that represents roads ($1.73 trillion) plus airports ($135 billion) and rails ($100 billion). On top of that, all the real estate projects and constructions, are ancillary and instrumental to new infrastructure investments. Donald Trump’s administration pledge to spend $1 trillion on America’s aging infrastructure over the next 10 years has drawn significant attention. North America is the most favored destination for infrastructure investment over the coming year, representing 60% of the industry believing it presents compelling investment opportunities.

 
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Historically, the U.S. has largely used municipal bond financing to fund the country’s transportation, water, social, and airport infrastructure. Tax- exempt municipal bonds have financed more than $2 trillion in new infrastructure investments over the past 10 years. Such funding has been used to construct and finance repairs to transportation projects, social infrastructure (such as schools, hospitals, prisons, housing, and court buildings), publicly owned electric power, water, and natural gas assets, and other projects.

 
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Over 50,000 state and local governments, authorities, and nonprofits have used municipal bonds. Nearly 75% of all public infrastructure financing comes from tax-exempt bonds. The remainder comes primarily from bank and private placement financings.

 
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C&Z GLOBAL Advisors is ideally positioned to capitalize upon “the Renaissance of American Infrastructure” and the positive outlook investors’ demand for infrastructural assets in the international market place, based on its Leadership’s rare focus, experience, and footprint, developed throughout three decades of national and international work.

C&Z GLOBAL Advisors can accordingly provide to national and international investors outstanding expertise, transactional record and unique access to the public sector, at Federal and State level to identify -internationally and throughout North America, and, particularly in America’s Top States for Business that have proven robust economic growth- and structure infrastructural projects and infrastructural real estate investments, and related funding options, in all relevant infrastructure sectors, assisting its clients on a project by project basis, or through the establishment and management of specialized routes to market, such as infrastructure funds, alternative investment vehicles, or specialized infrastructure private equity funds.

 
 

C&Z GLOBAL Advisors can assist clients both as regards ‘Greenfield Assets’, ‘Development Assets’ or ‘Mature Assets’: an investment in an infrastructure asset can be made prior to construction (‘greenfield’) or into a mature, operating asset (‘brownfield’). Although the underlying assets may be the same, the decision as to which phase of development the investment is made can have a significant impact on the risk/return profile of the investment.

 
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The profile of target annual returns and cash yield components varies for different types of infrastructure assets. Despite strong competition for core assets, the largest proportion (46%) of respondents to PREQIN’s INVESTOR OUTLOOK: INFRASTRUCTURE ASSETS, H1 2017 survey believes these strategies currently present attractive opportunities, followed by opportunistic (42%) and value added (35%).

 
 

C&Z GLOBAL Advisors Infrastructural Consulting & Management Services include:

  • researching, identifying, documenting,, strategizing, structuring and implementing - in North America, as well as in other international markets and regions where C&Z GLOBAL Advisors and its partners and contacts pursue an identifiable pipeline.- (i) infrastructural projects, investments and financing, or privatizations and (ii) investments in related infrastructural and commercial real estate assets, in all relevant sectors, and asset categories, such as “physical facilities, supply chains, information technologies, distribution and communications networks, assets, services and systems” (and this for infrastructural and commercial real estate assets, in all relevant sectors, and asset categories, such as “physical facilities, supply chains, information technologies, distribution and communications networks, assets, services and systems” (and this for ‘Greenfield Assets’, ‘Development Assets’ and/or ‘Mature Assets’);
  • contributing to the conceptualization of Public Stakeholder’s Financial Strategies aimed at (i) Public Budgets Pressure Reduction, (ii) Revenue Options Expansion, (iii) Value Capturing (including pursuing various options such as Tax Increment Financing (TIF), Special Assessment Districts (SAD) or Local Improvement Districts, Naming Rights, Private Development Capital, etc.), (iv) Using and Leveraging New and Existing Financial Tools, and (v) Optimizing Infrastructure Financing Credit Rating;
  • contributing, while liaising with the Project Stakeholder/s and relevant Government Agencies, to the identification and pursuit, under the client’s leadership, of any federal or state credit made available to infrastructural projects, as well as any viable incentive provided by Federal, State and local government, along with any relevant funding options, to the extent possibly available/lawful under applicable terms and conditions;
  • coordinating with the Client’s executive leadership, their Infrastructure & Real Estate Group, finance and administration, and their legal department, as well as advisors and counsels, (to the extent needed), in order to verify conditions and opportunities instrumental to
  • establish and develop the drivers of a Successful Infrastructure Public-Private Partnership (PPP), as follows:
  • Create a strong legal framework at the state level. PPPs require a sound legal basis to ensure that the public sector has the authority to pursue a deal.
  • Prioritize projects based on quantifiable public goals assisting on economic and financial analysis that captures the social, environmental, and fiscal impacts of the deal.
  • Find the right revenue stream to find durable and resilient revenue sources that will pay for the investment over the long-term.
  • Create a clear and transparent process. Standardization will create a market for PPPs that provides the public and private sector with a clear roadmap for success.
  • Actively engage with stakeholders to execute at the highest standards possible.
  • validate and/or conceptualize/revisit/the projects’ whole-life costing approach and budgeting proposition, optimizing funding, procurement and construction, operation, and maintenance costs, risk management, energy saving, and project delivery,
  • develop a revenue plan throughout the life of the project, and accordingly establish and develop the drivers of the project structure and framework (including but not limited to successful Infrastructure Public-Private Partnership (PPP), privatization, concessions, etc.
  • contributing to the conceptualization, negotiation and drafting of the related contractual and funding framework, and
  • developing, to the extent required or appropriate, conditions and opportunities to contractually engage Clients as regards design, development, engineering, construction, procurement, transition, operation, etc.;
  • liaising with relevant Projects Stakeholders and Government Agencies, to the extent lawfully authorized, appropriate and instrumental to the approval, concession and execution of any such project/s and Infrastructural Investment Opportunities.
  • reviewing, conceptualizing and implementing of Sustainability, CSR and Community Development Strategies, Sustainability Reporting, Disclosure & Contractual Practices, to validate and support infrastructural projects;
  • preparing and delivering infrastructure, and related sectors and geographies, commercial real estate and/or site-selection studies.

Additionally, if/when of interest or required in the Client’s full and exclusive discretion, C&Z GLOBAL Advisors could provide additional, optional services, as regards:

  • preparing and delivering site-selection research, infrastructural sectors and geographies studies, commercial real estate studies, and market studies , analyzing/benchmarking infrastructure sectors; projects; geographies and related market indicators and site-selection considerations; stakeholders, local ecosystem and decision making process; infrastructural/commercial real estate features and history, etc.), and/or 
  • providing post-closing, execution, transition and operational assistance to the Investor’s executive leadership, its finance, and administration departments, in conjunction and/or under the supervision of the Client’s legal department and  counsels, as regards: 
    • the approval process of incoming investments, pursuant to the Foreign Investment and National Security Act of 2007 (FINSA), before the Committee on Foreign Investment in the United States (CFIUS), or any other regulatory agency;
    • the organization, structuring and management of any special purpose vehicle, in the form of partnerships, joint ventures, alternative investment vehicles, or specialized private equity fund SPV”) or specialized private equity fund which the investor may wish to establish on a project-by-project basis, or for multiple investments;
    • post-closing assistance, including: 
    • contributing to the identification, introduction and procurement of national/international companies and contractors of primary standing specialized in the construction and civil engineering business with a specific focus and track-record on/in the infrastructure sector, that could be instrumental to the successful execution of selected project/s, and/or or construction of the relevant assets; and/or 
    • assisting Clients as regards (i) the executive, EPC and transition phase (“development, construction and transition phases, investment consolidation, as well as development, construction, purchase, lease of any related real estate assets,”), and/or(ii) the operational phase (“performance monitoring” aimed at the “ongoing support and stability” and “protection of the position”); 
    • representation of the investor’s interest in any related Public Private Partnerships.

Finally, should the Client opt in its full and exclusive discretion to structure the investment and financing in project/s and assets, through a special purpose vehicle, in the form of partnership, joint venture, or any other alternative investment vehicles, (hereinafter “SPV”), a private equity infrastructure fund (hereinafter “PE INFRA FUND”), or a private equity real estate fund (hereinafter “PERE FUND”), as the case may be, C&Z GLOBAL Advisors may further assist in the organization, structuring and management of such SPV, PE INFRA FUND or PERE FUND, on a project-by-project basis, and/or for multiple investments.


FDI - M&A - INFRASTRUCTURE - ECONOMIC & BUSINESS DEVELOPMENT