Analysis of purchasers

Infrastructure funds and construction and other PPP companies have been the main purchasers of PPP equity, accounting for 86.2% of transactions and 79.1% PPP equity purchases between 1998-2012 - see Table 6. Pension funds acquired equity in 44 projects, mainly by construction companies transferring equity to their own pension funds, or acquisitions by Dutch pension funds. Joint ventures between construction companies, banks and/or pension funds had an important role in enabling construction companies to obtain financial gains whilst retaining partial ownership of equity - see Part 3.

Table 6: Purchasers of PPP equity

Type of purchaser

No. of transactions

No. of PPP projects

Sale value £m (No of transactions)

Offshore infrastructure fund

50

171

1,483.3 (45)

Other infrastructure fund

117

227

1,060.9 (61)

Pension fund

15

44

154.9 (10)

Joint venture - construction company & bank or pension fund

10

67

200.8 (6)

Other financial institution

10

14

85.6 (4)

Construction or PPP company

53

105

611.9 (28)

Source: European Services Strategy Unit PPP Equity Database, 2012. Excludes transactions where information not available.

The increasingly dominant role of offshore infrastructure funds is evident when the data is compiled on an annual basis using the same six-fold classification of purchasers - see Table 7. The sudden surge in PPP equity acquisitions by offshore infrastructure funds began in 2006 with the flotation of HICL and Babcock & Brown Public Partnerships, followed by the John Laing Infrastructure Fund (2010), Bilfinger Berger Global Fund (2011) and the offshore location of Semperian in 2009.

There has been a parallel decline in the role of other infrastructure funds and acquisitions by construction and PPP companies. Joint ventures grew in importance up to 2010, but have declined since the growth of offshore funds.

Table 7: Changing pattern in acquisition of PPP equity (2003-2012)

Year

Percentage of PPPs in which equity sold to:

Offshore
infrastructure

fund

Other
infrastructure
fund

Pension fund

JVC construction co. & bank or pension fund

Other
financial

institution

Construction or PPP company

2003

0

22.6

3.2

0

0

74.2

2004

0

92.5

0

0

0

7.5

2005

0

70.7

0

0

10.3

19.0

2006

33.6

54.0

0.9

8.4

0

3.1

2007

11.3

62.9

6.5

9.7

4.8

4.8

2008

8.9

15.6

8.9

8.9

2.2

55.5

2009

13.4

34.3

32.8

14.9

0

4.6

2010

30.0

8.7

10.0

37.5

2.5

11.3

0211

79.8

11.5

1.9

5.8

0

1.0

2012*

75.0

8.3

8.3

4.2

4.2

0

Source: European Services Strategy Unit PPP Equity Database, 2012 * to end July 2012