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The Future of UK Infrastructure Investments

Following a turbulent few months for UK politics, and resultantly, the UK's economy; it is unclear what direction infrastructure investments will take. Whilst Britain is in a time of financial rectification, it is understandable for foreign investors view the unstable market in the UK as somewhat unattractive. Infrastructure investors are looking to the government for clarity surrounding the direction of investments in the UK.

Australian pension fund manager, IFM Investors, have grown in the past two decades to become one of the largest players in the UK’s infrastructure sector. Executive Director of Public Affairs Europe, Gregg McClaymont, comments on the firm’s uncertainty towards the lack of communication from the government: “clarity not just on what it wants to do, but how it’s going to finance it ... the government needs to be clear about the projects it wants to deliver and then there needs to be an agreement about those projects it’s going to fund itself on the public balance sheet and those that it’s going to look for pension funds and others from the private sector to contribute to and invest in”– as detailed in an interview with the Financial Times.

If the government can provide institutional investors and investment managers with a constructive strategy for UK infrastructure projects, this will lead the sector into a much stronger position to deploy capital and attract foreign investors again.

UK urged to lay out ‘clear plan’ on new infrastructure projects. Australian pension fund manager IFM says instability and lack of clarity are delaying investment.

Tags

transport & infrastructure, private equity, investment, finance, private markets

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