EM infrastructure build prompts race for profit

NEWS ANALYSIS

Developing countries' drive to support their domestic economies through investing in infrastructure has sparked a series of fund launches and fresh capital raisings by managers hoping to profit.

First State Investments and BNY Mellon’s affiliate ARX Investimentos in Brazil have launched portfolios with exposure to emerging market infrastructure, while Lutetia Capital in Paris and Macquarie in Australia have sought fresh capital for existing products. They expect to benefit through investing in projects directly, or indirectly through firms building these projects. Additionally, they welcome the entrance into the sphere of private equity firms and other rivals, in anticipation they may pay a premium for later-stage involvement. Addressing the balance Western governments m...