Investors rethink as infrastructure returns shrink

Drawn-out development timeframes and eroding returns have prompted some investors to look at smaller projects.

Asia’s infrastructure needs have long attracted interest from private equity firms but drawn-out development and construction timeframes and eroding returns have prompted some investors to look at smaller projects, particularly in energy.

Data from Dealogic shows that the number of private equity deals in the oil and gas, energy and utility sectors in Asia ex-Japan fell to 7 in 2013 from 21 in 2010.

Further illustrating the tough times, 3i Infrastructure said in May that its $1.2 billion India Infrastructure Fund will not make any new investments as it has not delivered on its expected returns, blaming a deterioration in the political, market and economic climate since...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222