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New “AIC Insights” Highlights Private Capital’s Potential for U.S. Infrastructure

Presentation Focuses On P3s, Private Investment, and Governmental Solutions

WASHINGTON – The American Investment Council released its latest “AIC Insights” installment today, focused on the ways private capital can help overhaul U.S. infrastructure. The release follows the recent launch AIC Insights, a new series of succinct presentations exploring trends and issues involving private equity.

Narrated by James Maloney, AIC Vice President of Public Affairs, “Revitalizing Infrastructure with Private Capital” discusses the current public funding deficit that has stalled infrastructure projects across the country, details the growth of infrastructure funds, and reviews how Washington and state governments can encourage private capital investments.

“Dry powder is at record highs, infrastructure-focused funds are ready to invest, and there is a track record of success across a range of P3s and direct investment projects,” said Maloney. “With appropriate support from federal and state governments, private capital can be the catalyst to finally overhaul U.S. infrastructure in an effective and sustainable way.”

Key takeaways from “Revitalizing Infrastructure with Private Capital”:

  • U.S. infrastructure must be upgraded. The American Society of Civil Engineers estimates that $4.6 trillion will be needed to improve infrastructure in all 50 states.
  • Traditional infrastructure funding is no longer adequate. Lower tax revenues, higher costs, and fewer municipal bond investors have reduced state and local capacity to invest in infrastructure.
  • Private equity has the experience and capital to boost U.S. infrastructure. Infrastructure fundraising has grown year-over-year, setting the stage for significant investments.
  • Key policies can help private capital improve infrastructure. Tax policies encouraging long-term investment, matching grant programs, state incentives, and streamlined permitting processes are some of the ways lawmakers can facilitate private investment in infrastructure.

This AIC Insights series follows the recent release of an AIC report and accompanying one-pager on “Private Capital and Public Good: Revitalizing Infrastructure with Private Capital.”

View all AIC Insights here.

About the American Investment Council

The American Investment Council (AIC) is an advocacy and resource organization established to develop and provide information about the private investment industry and its contributions to the long-term growth of the U.S. economy and retirement security of American workers. Member firms of the AIC consist of the country’s leading private equity and growth capital firms united by their successful partnerships with limited partners and American businesses. More information about the AIC can be found at www.investmentcouncil.org.