Why companies sell PPP equity?

The original shareholders in SPCs sell equity to increase profits, reduce the cash contribution to their pension fund, and/or to avoid undisclosed longer-term obligations or potential problems. Subsequent sales of equity by financial institutions, PPP companies and infrastructure funds could include these reasons and the desire to rationalise their portfolio of assets.

For example, HICL acquired a 50% interest in Doncaster Schools PPP in December 2011, one of 26 assets in a £143m deal with Barclays Infrastructure Funds Management. Eleven months later, HICL sold the equity and loan note interest to the Vinci Pension Fund (which owns the remaining equity) for a "…small profit" to "…optimise portfolio performance" (HICL, 2012a and 2012b).