1.6 There are generally two types of equity investors:
• Equity investors who invest in the project at its start are known as primary investors. Some primary investors sell their shareholdings soon after construction is complete. This realises their cash so it can be used to develop other projects. They sell their shares to other investors who are not interested in developing projects.
• Those buying the equity of already developed projects are known as secondary investors. Secondary investors generally require immediate income from stable cash flows which come during the operational phase of an established project. Some have built up sizeable portfolios of PFI projects (Appendix Two).