Show an ad over header. AMP

How private equity is viewing Biden's infrastructure plans

Four years ago, private equity was giddy over the prospect of a massive federal infrastructure bill. Then, "Infrastructure Week" became a punchline.

Why it matters: Infrastructure is again on the table, expected to be President Biden's top legislative priority once the stimulus is signed.

  • Private equity infrastructure execs are "cautiously optimistic" this time around, repeating their 2016 thesis about the nonpartisan nature of bridges, roads and airports.

Yes, but: Will a Biden infrastructure plan lean heavily on public-private partnerships (P3), which had been expected to be a major feature of Trump’s stillborn effort?

  • Including P3’s could help get more GOP buy-in, but also could erode some Democrat support. One piece of the calculus may be if Biden chooses to pursue infrastructure via reconciliation (currently, it appears he will).
  • "I think they should include P3’s for the multiplier effect, like the Australian model, but if it’s just federal manna to the states, some of that will crowd out private investment," explains the head of a large U.S. infrastructure fund.
  • The new stimulus package includes billions in state and local aid, aimed primarily at filling revenue shortfalls. Some of that could be used for infrastructure projects, although private equity investors expect that to be mostly about small public works efforts that were planned pre-pandemic.

The state of play: Private equity firms have raised more than $200 billion for infrastructure funds over the past two years, much of which is earmarked for the U.S.

Between the lines: Last month's Texas power problems are a wildcard.

  • "I think that Texas may help both parties realize that there needs to be an investment in power resilience and energy infrastructure," another private equity infrastructure investor says. "It doesn't matter if they call it 'energy transition' or not, so long as they get to the same place."

The bottom line: Everyone supports at least the idea of a major infrastructure bill, and private equity is at the ready to participate. Again.

Big European soccer teams announce breakaway league

12 of world soccer's biggest and richest clubs announced Sunday they've formed a breakaway European "Super League" — with clubs Manchester United, Liverpool, Barcelona Real Madrid, Juventus and A.C. Milan among those to sign up.

Details: So far the breakaway league that's due to start in August consists of six clubs from England, three from Spain and three from Italy.

Keep reading... Show less

Senate Democrats settling on 25% corporate tax rate

The universe of Democratic senators concerned about raising the corporate tax rate to 28% is broader than Sen. Joe Manchin, and the rate will likely land at 25%, parties close to the discussion tell Axios.

Why it matters: While increasing the rate from 21% to 25% would raise about $600 billion over 15 years, it would leave President Biden well short of paying for his proposed $2.25 trillion, eight-year infrastructure package.

Keep reading... Show less

Republican leaders raked in sizable donations from grassroots supporters

Republican leaders turned to grassroots supporters and raked in sizable donations after corporations cut them off post-Jan. 6.

Why it matters: If those companies hoped to push the GOP toward the center, they may have done just the opposite by turning Republican lawmakers toward their most committed — and ideologically driven — supporters.

Keep reading... Show less

CDC: Half of US adults have received one COVID-19 vaccine dose

Data: CDC; Chart: Axios Visuals

Half of US adults have received at least one dose of the COVID-19 vaccine and about a third are fully vaccinated, according to new data from the Centers for Disease Control and Prevention.

Why it matters: COVID-19 cases and hospitalizations are still on the rise, CDC director Rochelle Walensky said during Friday's White House COVID-19 briefing. With cases in many states being driven by variants, public health officials have emphasized the need to ramp up vaccinations.

Keep reading... Show less

Israeli intel agencies believe Vienna talks will lead to U.S. return to Iran nuclear deal

Israeli military intelligence and senior officials in the Mossad briefed a meeting of the nation's security cabinet that talks in Vienna between Iran and other world powers will lead to the U.S. returning to the 2015 nuclear deal, two officials who attended the meeting told me.

Why it matters: The Israeli government is very concerned about a U.S. return to the nuclear deal and is trying to convince the Biden administration not to take the pressure off the Iranian regime.

Keep reading... Show less

"It hurts": Latino community of 13-year-old killed by police in Chicago reels after shooting

Residents of Little Village, a well-known and predominantly Latino neighborhood in Chicago, are grieving the death of Adam Toledo, a 13-year-old Mexican American boy from the neighborhood who was shot and killed by a police officer on March 29, NBC News reports.

Why it matters: Adam Toledo's killing shines a spotlight on police shootings of Latinos, who are killed by law enforcement at the second-highest rate after Black Americans, according to data from the Washington Post.

Keep reading... Show less

Biden adviser warns "there will be consequences" for Russia if Navalny dies

The Biden administration warned the Russian government "that there will be consequences" if jailed Russian opposition leader Alexei Navalny dies, National Security Adviser Jake Sullivan told CNN on Sunday.

The big picture: Sullivan also defended President Biden for not mentionining Navalny in a Thursday speech about Russia or in a Tuesday call with Russian President Vladimir Putin,saying the White House aims to deal with the issue "privately and through diplomatic channels."

Keep reading... Show less

Prosecutor on leave for failing to "fully present the facts" after shooting of 13-year-old boy

Cook County prosecutor James Murphy was placed on administrative leave Friday after he implied in court that 13-year-old Adam Toledo, who was shot and killed by a police officer in March, was armed when he was shot, the Chicago Tribune and Chicago Sun-Times report.

Why it matters: Videos of the shooting show that Toledo dropped what appears to be a weapon and put his hands in the air a moment before before he was fatally shot. A lawyer for the Toledo family said Thursday that if the teen "had a gun, he tossed it."

Keep reading... Show less



Get Goodhumans in your inbox

Most Read

More Stories