IMAP Insights: Infrastructure Sector
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The document analyzes the current state and future trends in the global infrastructure sector post-COVID-19, highlighting a shift towards investments in digital and social infrastructure alongside traditional sectors like energy and transport. It notes a growing investor appetite, particularly from pension funds, amidst challenges such as high asset prices and declining deal flow. Future projections suggest significant public expenditure on infrastructure as governments aim to address gaps caused by underinvestment, with opportunities emerging in diverse areas, including telecommunications and renewable energy.
IMAP Insights: Infrastructure Sector
- 1. C o n t e n t s Introduction 3 Sector Overview 4 Sector Trends 10 Transactions 24 Investor Landscape 30 US Perspective 44 IMAP International M&A Partners IMAP INSIGHTS F E B R U A R Y 2 0 2 1 OUR M&A PERSPECTIVE ON THE GLOBAL INFRASTRUCTURE SECTOR
- 2. INTRODUCTION As a result of the COVID pandemic it is highly likely we will see large public expenditure in infrastructure in the Energy and Transport sub-sectors, which historically have been the most active, yet as they have matured have seen deal growth stall. Nowadays, the big winners are new sub-sectors such as Digital and Social, which are seeing increasing global appetite for infrastructure. Furthermore, transactions involving digital infrastructure are benefitting from tremendous tailwinds amid the continued penetration of cloud service providers, resulting in traditional deals becoming less frequent. We expect the infrastructure sector to remain vibrant, as governments try to bridge the infra gap that has been generated by the recent global underinvestment in infrastructure. Significant dry powder reserves and strong competition are pushing up asset prices and depressing projected returns, which may be preventing deal flow for more opportunistic investors. Nonetheless, the US and Europe seem to be gearing up to carry out massive infrastructure investments from 2021 onwards to deal with the global pandemic, which can bring new greenfield opportunities to the market. We have seen little change in investor mix- up, with pension funds retaining their role as the largest investors. Foundations, insurance companies and banks are the next largest categories. We are however, seeing the surge of «Godzilla» sized funds, as well-known fund managers seek to break records by raising close to USD 20 billion for their latest vehicles, with many trying to avoid the trend of LP’s becoming competitors. SERGIO MILIC ENRIQUE VARGAS GONÇALO VAZ BOTELHO BILL SPRAGUE IMAP global Infrastructure Sector Leaders: Gonçalo Vaz Botelho, Bill Sprague, Enrique Vargas and Sergio Milic look at the current state of the Infrastructure sector and why it’s necessary for governments to continue to try to bridge the infrastructure gap generated by recent global underinvestment. They detail the trends impacting the M&A landscape now and moving forward and identify the key market players and investors. They also share insights on the unique characteristics of the US Infrastructure market. 3 2 OUR M&A PERSPECTIVE ON THE GLOBAL INFRASTRUCTURE SECTOR IMAP
- 3. Transportation Power, Utilities & Networks Digital Infrastructure Social Infrastructure 4 SECTOR OVERVIEW IMAP INFRASTRUCTURE SECTOR OVERVIEW Supporting Real Economies Infrastructure is the set of fundamental facilities and systems that support the sustainable functionality of households and firms. Primary Infrastructure Sectors The primary sectors are divided into core: brick & mortar, and non-core: newcomers, such as Digital and Social. Previously public, Transportation, Power, Utilities & Networks are now privately owned and invested. ▪ Deals in this sector have subsided as opportunities become increasingly scarce. Funds are accepting greater exposure to demand risk and diversifying into less mature markets in a race for yield. ▪ Renewable energy deals still dominate this space. ▪ ESG trends are expected to create further room for growth. ▪ Privatization of water distribution & sewage networks is likely to increase deal flow in this space. ▪ Some legacy natural monopolies are being forced to carve-out and privatize their fibre networks and/or TelCo towers. ▪ Appetite for digital infrastructure is growing globally. ▪ Deals involving Healthcare PPPs and social housing are very prevalent in this space. Still further room for growth as demographic pyramids worsen, particularly in Europe. ▪ Toll roads ▪ Ports ▪ Airports ▪ Rail ▪ Power generation assets ▪ Electrical power grids & pipelines ▪ Water distribution networks ▪ Water sewage & treatment plants ▪ Data centers ▪ Dark fibre networks ▪ LTE/5G network (TelCo towers) ▪ Healthcare facilities ▪ Defence networks & equipment ▪ Firefighting equipment (e.g. helicopters) MAIN ASSET CLASSES Core sectors Non- core sectors 5 SECTOR OVERVIEW
- 4. 7 6 SECTOR OVERVIEW SECTOR OVERVIEW IMAP SECTOR TRENDS - OVERVIEW Despite the recent contraction in the number of actual deals closed, aggregate deal value has been steadily growing. Deals are becoming larger, with investors increasingly interested in larger class assets, average deal size is subsequently growing. In terms of trends in the sector, we expect to see: ▪ Projects financed through PPPs coming to the forefront, in an effort to stimulate economic activity and recovery. ▪ Increase in investments in Telecommunications Services and Power caused by the acceleration in the digital transformation of the work-place in response to the COVID pandemic. ▪ Chinese investment will continue to flow throughout the world, despite increasing unease among developed countries. ▪ Investments in Interconnectedness, Sanitation, Education and Telecommunication as local/domestic markets look to improve reliance of supply chains. ▪ Stricter environmental standards to come into play and infrastructure will be required to become more resilient.
- 5. 9 8 SECTOR TRENDS SECTOR TRENDS IMAP PPPS AS MECHANISM TO STIMULATE ECONOMIC ACTIVITY AND RECOVERY Projects financed through PPPs will come to the forefront, as a key ingredient in government efforts to use infrastructure as a “recovery” sector. Mechanism Challenges PPPs in the Future The current pandemic presents challenges to the 2 alternatives under which PPPs have been traditionally structured Governments will need to act much more tactically to attract private capital Infrastructure capital gap will widen Less leveraged structures Contingent guarantees Blended finance Demand-Based-Projects Traffic Risk Difficult to finance No Government balance needed Availability-Based-Projects Mitigated Traffic-Risk Reduced financing risk Government balance needed
- 6. 11 10 SECTOR TRENDS SECTOR TRENDS IMAP PANDEMIC IMPACT IN INFRASTRUCTURE SUBSECTORS Airports Roads Healthcare Telecom Power The pandemic has considerably accelerated the digital transformation of the work-place. The velocity at which companies and communities are adopting a more digital environment is remarkable. Challenges in Infrastructure Advisory Services Opportunities Sector Investment Trend ▪ Refinancing opportunities due to lower interest rates and new traffic levels (revenue shortfalls) ▪ Secondary M&A opportunities due to: 4 Pension funds looking for stable yields and long-life assets 4 Increased equity requirements mean that project sponsors will have to turn to their capital in order to keep their ongoing concerns Investments in telecommunication services and power are the new investment trend. Changes ranging from satellite internet and fiber optic, to giant batteries to store intermittent green energy throughout the day. ▪ Revenue shortfalls 4 Airports 4 Toll-Roads ▪ Demand increase 4 Telecom 4 Power 4 Healthcare
- 7. 13 12 SECTOR TRENDS SECTOR TRENDS IMAP CHINESE INVESTMENT WILL CONTINUE TO FLOW THROUGHOUT THE WORLD Chinese investment, based on the ”Belt and Road” initiative, has been a relevant player in infrastructure investing over the last decade. However, there are increasing sign of uneasiness among developed countries concerning safety issues, especially for Core+ and Non-Core, so the question is, will this investment be welcome? SAMPLE OF RECENT CHINESE TRANSACTIONS Huawei 5G Networks Europe Port of Ambarli (Kumport) Nuclear Facilities Bogotá’s Subway Water Utility Company Compañía General de Electricidad de Chile Lagos Light- Rail Mass Transit Port of Melbourne Oil Pipeline Developed Countries Developing Countries
- 8. 15 14 SECTOR TRENDS SECTOR TRENDS IMAP SUPPLY CHAIN VULNERABILITY ENVIRONMENTAL INFRASTRUCTURE The pandemic has revealed the vulnerability of extended supply chains. COVID-19 has raised awareness of the need to build a more resilient infrastructure; one which can withstand shocks. Infrastructure Priorities Shifted - Concepts Such as “Re-shoring” and “Self-reliance” are Here to Stay Past ▪ The trend was to “bring your country to the world” ▪ Investments: 4 Roads 4 Ports 4 Airports ▪ Bringing an entire community onto the local/domestic market looking to locally source production and increase the reliance of the supply chain ▪ Investments: 4 Interconnectedness 4 Sanitation 4 Education 4 Telecommunication Future Government’s Stimulus Agenda Will Come, Influenced by Stricter Environmental Standards Minimize greenhouse gas emissions A Minimizes local pollution of hazardous waste F Minimizes local pollution of air E Resilient to climate change and natural disasters B Minimizes local pollution of water C Minimizes local pollution of solid waste D
- 9. 17 16 TRANSACTIONS TRANSACTIONS IMAP IDIOSYNCRASIES OF AN INFRASTRUCTURE TRANSACTION MOST COMMON TYPE OF INFRASTRUCTURE DEAL Historically the most active infrastructure sub-sectors have been Energy and Transport, but as these sectors mature, deal growth has stalled in this space and new sectors such as Digital infrastructure are becoming increasingly in vogue. Due to COVID however, it’s highly likely there will be large public expenditure in infrastructure in the Energy and Transport sectors. Global Infrastructure Deals by Industry 2015-2019 Source: Preqin Pro and IMAP calculations ▪ Overall deal activity has fallen by 21% since its peak in 2016. ▪ The bulk of investment is still concentrated in the 2 most traditional infra sectors: Transport and Power, Utilities & Networks. ▪ Traditional infra deals are becoming less frequent, as opposed to transactions involving digital infrastructure, which are benefiting from tremendous tailwinds amid the continued penetration of cloud service providers. 77% deals in Power, Utilities & Networks 3500 3000 2500 2000 1500 1000 500 0 2015 2016 2017 2018 2019 Renewable Energy Conventional Energy Utilities Transport Telecoms Social Other Infrastructure transactions have some particularities that differ slightly from those of a normal M&A transaction. Clients fall into 3 main categories: End-investors willing to invest directly in a project/asset. Infra funds that raise funds from end-investors and pool them into projects/assets. Strategic sector players that are specialized in a specific infrastructure category. Recent market trends have seen end- investors developing in-house infra teams and by-passing infra funds, investing directly in projects/assets, which are typically either greenfields (unbuilt) or brownfields (in operation) and, may or may not, be exposed to market risk. Publicly-backed projects’ revenues are usually directly related to regulatory regimes, and generally fall into one of multiple contractual frameworks, e.g. PPPs, Concessions, Grants and inter alia - financial models tend to be contractual pieces in PPPs & Concessions. Privately-backed projects on the other hand, usually involve contracted assets, with a significant portion of revenues tied to long-term contracts with blue-chip private companies. These assets often have a maturity (concession term), which makes the terminal value dependant on the probability of concession renewal and they are normally capital-heavy/intensive. Given the recent decline in public benchmark debt yields in most OECD countries, current transactions usually involve some sort of refinancing to optimize the financial costs of the asset and infra leverage ratios typically exceed that of other assets, making equity yields heavily sensitive to financing/ refinancing outcomes. Furthermore, due to the amount of leverage that these assets accept, advisor fees are usually calculated on an equity basis.
- 10. 19 18 INVESTOR LANDSCAPE INVESTOR LANDSCAPE IMAP INFRASTRUCTURE GAP INFRASTRUCTURE INVESTORS We expect the infrastructure sector to remain vibrant, as governments try to bridge the gap that has been generated by the recent global underinvestment infrastructure. UN’s SDGs will also act as a major catalyst for investment. There has been little change in investor mix-up, with pension funds retaining their role as the largest investors. Foundations, insurance companies and banks are the next largest categories. Infrastructure Investment at Current Trends & Future Needs End-investors in Infrastructure by Type, 2015 vs. 2019 USD Trillion % of total investment Source: G20 Global Infrastructure Hub and IMAP calculations Source: Preqin Pro and IMAP calculations ▪ Significant dry powder and strong competition are pushing up asset prices and depressing projected returns, which may be preventing deal flow for more opportunistic investors. ▪ Nonetheless, the US and Europe seem to be gearing up to carry out massive infrastructure investments from 2021 onwards to deal with the global pandemic, which can bring new greenfield opportunities to the market. ▪ Strong and consistent returns, as well as regular cash flows and inflation linked returns, have proven to be durable attractions for institutional investors such as pension funds that seem to be allocating approx. 2% of their AUM to this asset class. ▪ For the majority of investors, Infrastructure remains a risk-mitigator and downside-protector rather than an alpha-generator. ▪ LATAM is also an important emerging market with great potential for infrastructure development. Current Trends Investment Need Investment Need (Incl. SDGs) 5,0 4,5 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0 2007 2009 2011 2013 2015 2017 2019 2021F 2023F 2025F 2027F 2029F 2031F 2033F 2035F 2037F 2039F 2015 17% 17% 15% 12% 9% 9% 9% 9% 7% 7% 5% 8% 6% 2% 3% 3% 3% 2% 5% 7% 7% 7% 7% 6% 3% 3% 2% 1% 1% 6% 2019 Private sector pension fund Public pension fund Foundation Insurance company Bank Asset manager Family office Endowment plant Wealth manager Corporate investor Government agency Superannuation scheme Fund of funds manager Sovereign wealth fund Other
- 11. 21 20 INVESTOR LANDSCAPE INVESTOR LANDSCAPE IMAP LARGEST INFRASTRUCTURE END-INVESTORS INFRASTRUCTURE FUNDS – THE ALTERNATIVE TO DIRECT ASSET INVESTMENTS ▪ While allocations to Infrastructure investments are at all-time highs, this capital is largely flowing to a small group of large fund managers. ▪ Open-ended funds have been steadily growing and are the unsung heroes of the Infrastructure fund space, gaining momentum over other fund classes. End-investors are channelling larger portions of their AUMs to the infra sector, via a mix of direct project investments and/or capital We are now seeing the surge of «Godzilla» sized funds, as well-known fund managers seek calls into infra funds. Direct asset purchases made by end-investors are becoming more common as those long in cash are both willing and have to break records by raising close to USD 20 billion for their latest vehicles – with many trying to the capacity to aggressively target and close large deals. With low interest rates, infra investments have become more attractive. avoid the trend of LP’s becoming competitors. Source: Infrastructure Investor Global Summit, Mergermarket & IMAP Source: IPE Real Assets – July 2019 & IMAP Largest institutional investors by committal to the asset class With more than USD 10 billion committed to infra Institution Name Country Estimated Infra Allocation (%) Infra AUM ($M) Main Sector Focus CPP Investment Board Canada 11.89% 34,928.10 Power, utilities & network (PU&N) Abu Dhabi Investment Authority UAE 3.00% 24,840.00 Unstated National Pension Service of Korea South Korea 3.57% 20,452.30 Transportation, PU&N Allianz Capital Partners GmbH Germany 51.38% 16,718.90 All CDPQ Canada 7.35% 16,666.90 All w/ growing focus on ESG projects China Investment Corporation China 1.60% 15,000.00 All APG Asset Management Netherlands 2.56% 14,371.10 Transportation, PU&N, Social Ontario Teachers’ Pension Plan Canada 9.50% 13,305.50 Transportation, PU&N, Social OMERS Canada 18.20% 12,938.70 Transportation, PU&N PSP Investments Canada 10.00% 12,592.10 Power, utilities & network (PU&N) BCI Canada 10.37% 11,917.50 Power, utilities & network (PU&N) Pensioenfonds Zorg en Welzijn Malaysia 4.84% 10,199.00 Power, utilities & network (PU&N) Largest infra funds by AUM Institution Name Country Estimated Infra Allocation (%) Infra AUM ($M) Macquarie infrastructure (MIRA) Australia 90% 107,691 Brookfield Asset Management Canada 32% 99,234 M&G Investments UK 17% 51 Global Infra. Partners US 100% 50,285 IFM Investors Australia 52% 37,629 Allianz Global Investors Germany 6% 29,31 The Carlyle Group US 13% 24,066 BlackRock US 0% 20,539 Global Energy Partners US 100% 19,955 AMP Capital Australia 14% 18,55 MetLife Investment Advisors US 3% 18,131 DWS Germany 21% 16,433 Examples of some direct investments made by end-investors: Concessionaire of natural gas regional distribution networks in Portugal 75% stake for €368M (equity) UK’s leading port operator, with a unique network of 21 ports 34% stake for £1.62B (equity)
- 12. 23 22 INVESTOR LANDSCAPE INVESTOR LANDSCAPE IMAP FUNDRAISING TRENDS PRIMARY INVESTMENT STRATEGIES Aggregate deal value has been steadily growing, despite the recent contraction in the number of Although there are several fund strategies, most fall under 3 main umbrellas. actual deals closed. With investors increasingly interested in larger class assets, average deal size is subsequently growing. GPs however, are finding it difficult to deploy capital and still hit their desired return thresholds. Value of Infrastructure Deals & Remaining dry Powder 2010-2019 USB Billion Source: Preqin Pro and IMAP calculations ▪ High dry powder and strong competition are pushing up asset prices and depressing projected returns, all of which prevents deal flow. ▪ The bulk of deals involved assets located either in North America (28%) or Europe (38%). Deals also take place in LATAM and Asia, and we expect things to start moving in Africa, where infra is still very much a public market. ▪ Amount of dry powder expected to reduce over the coming years as the US and EU launch their fiscal stimulus packages to deal with the economic fallout of COVID-19. Aggregate Deal Value ($bn) Dry Powder ($bn) 600 500 400 300 200 100 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 485 212 CORE CORE PLUS / VALUE-ADD OPPORTUNISTIC ▪ Assets with mitigated top line risk – contracted/regulated, with low operational complexity & fully deployed ▪ Brownfield assets (fully built with operational track record) ▪ Regulatory and/or direct public sector involvements. Long term concession agreements or revenue contracts with strong counterparties (sovereigns) ▪ GDP resilient, demand inelastic, pricing certainty ▪ Correlated with inflation, frequently through contractual links ▪ Located in stable OECD countries ▪ Minimal value creation opportunities at project level ▪ Toll roads, social infra, certain utilities ▪ Target equity returns of 6-8% ▪ Public equity, private closed- end and open-end funds ▪ Assets with some operational risks, but which can be heavily mitigated/hedged ▪ Primarily brownfield assets, but with some capital expenditure requirements (to update/expand) ▪ Some public greenfield assets with limited construction and demand risk – e.g. greenfield PPP’s. Opportunity to create value through management inputs ▪ Short/long term contracts with high barriers to entry that protect yield ▪ Some inflation sensitivity ▪ Primarily located in stable OECD countries ▪ Some value creation opportunities at project level ▪ Railways, airports and gas networks ▪ Target equity returns of 10- 12% - mix of yield and capital appreciation ▪ Private closed-and-open-end funds ▪ Exposure to unmitigated risks – power price, roads and ports traffic. Exposure to market competition ▪ Brownfield/greenfield assets without demand guarantees ▪ Revenues exposed to market cycles. Occasionally backed by corporate guarantees ▪ Fully exposed to economic cycle and competition ▪ Large inflation sensitivity ▪ Located in OECD and emerging markets ▪ Material value creation opportunities ▪ Corporate platforms – distribution/logistic centres - similar risk profile to PE ▪ Target equity returns in excess of 14% - high weighting to capital appreciation ▪ Private closed-end funds
- 13. 25 INVESTOR LANDSCAPE INFRASTRUCTURE ASSET YIELDS VS COMPETITION Too much money chasing too few deals has caused a generalized drop in infra yields. Infra assets are increasingly being sold in organized processes that generally bring lower returns to new investors. Hence, new investors are increasingly interested in bilateral, as opposed to organized processes – these are primarily secondary transactions in brownfield assets. Therefore, it is crucial to identify regional brownfield assets that can be transacted far in advance for clients looking to partic ipate in worldwide infra projects with private investors. Private Capital: Horizon IRRs by Asset Class Annualized returns Source: Preqin Pro and IMAP calculations ▪ Infrastructure returns have been generally stable over the last 10 years, whilst recent demand for assets has brought about a drop in yields. ▪ Both capital calls and distributions are likely to decline, as fund managers delay making acquisitions or exits in 2021. ▪ It seems likely that unlisted Infrastructure funds will be among the most insulated from the volatility and disruption that affected global markets in the first half of 2020. 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 1 Year to Jun-19 Private Capital Private Equity Private Debt Real Estate Infrastructure 3 Year to Jun-19 5 Year to Jun-19 10 Year to Jun-19 24 INVESTOR LANDSCAPE IMAP
- 14. 27 26 US PERSPECTIVE US PERSPECTIVE IMAP UNIQUE CHARACTERISTICS OF THE US INFRASTRUCTURE MARKET EFFECTIVELY ALIGNING PROJECTS AND CAPITAL The United States has woefully underinvested in infrastructure for years, as such, the Congressional Budget Office estimates that in excess of USD 2 trillion is needed by 2025.The US is currently at a record low in terms of annual investment into infrastructure as a % of GDP, and near the bottom of all developed countries. An integrated Infrastructure Plan was at the core of President Trump’s initial policy proposals, but like most prior Administrations, there were no significant legislative initiatives nor Executive Orders focusing on the Infrastructure needs of the country. In the US, Government capital will largely focus on projects that are deemed critical in nature, but do not necessarily generate ongoing cash flow. Private capital will focus on higher revenue generating projects, both critical and non-critical, whereas In contrast to much of the world, concessions and large PPP projects are not core parts of the US Infrastructure market. More often than not, governments, at all levels, want private capital to bear the financial risk, but are not willing to provide a reasonable return on that capital. Furthermore, every administration for the past 20+ years has included Infrastructure programs in their initial policy initiatives, but very few such programs have had a significant impact on the capital flows into the sector. The most effective policy tools have been tax and related credits, especially in the Energy sector (i.e. LCFS credits, RINs, etc.), non-critical, low revenue generating projects will not attract any capital, be it public or private. While prospects are still uncertain at the Federal level, at the State and local levels there are no prospects for but the lack of long-term certainty surrounding those credits has impacted capital flows. At this point, the likelihood of meaningful increases in infrastructure spending under the Biden administration remain uncertain. ▪ Biden has proposed a USD 2.4 trillion infrastructure plan, largely focusing on the Energy and Transportation sectors ▪ That bill, or any similar legislation, will face political challenges, even though the Democrats now narrowly control the senate material infrastructure investments. Both State and local budgets have been decimated by the COVID-19 pandemic, and many are struggling to fund basic needs, which leaves no capital for infrastructure, or any other investments. Given these dynamics, and the current low interest rate environment, well structured infrastructure projects and companies can and will be financed by private equity and debt providers. INFRASTRUCTURE CAPITAL PROVIDERS ARE BINARY. RISKS MUST BE MITIGATED AND CANNOT BE “PRICED” The key to attracting capital providers is making sure that the investment opportunity can properly address the key transaction criteria that nearly all capital providers adhere to.
- 15. 29 28 IMAP INFRASTRUCTURE DEALS IMAP INFRASTRUCTURE DEALS Energy assets developer and operator CANADA Acquired Majority Control of Business Operations Energy distributor and commercializer COLOMBIA ADVISED ON PURCHASE OF COMPANY Public utilities company COLOMBIA Acquired 100% of Business Operations Electricity distributor and commercializer COLOMBIA ADVISED ON PURCHASE OF COMPANY Engineering and infrastructure group INDIA Acquired Oil & Gas Divisions from TREVI Group Design, manufacturing and distribution of drilling and workover rigs ITALY ADVISED ON SALE OF COMPANY Largest biogas producer in Brazil (subsidiary of JMalucelli) BRAZIL Acquired Selected Assets of Seller’s Business Landfill gas project in Rio de Janeiro and Sao Paulo BRAZIL ADVISED ON SALE OF COMPANY IMAP INFRASTRUCTURE DEALS Selected IMAP International deals 2018-2020 Constructor of large, complex civil infrastructure ITALY Capital increase and debt refinancing General constructor of public infrastructure ITALY FINANCIAL ADVISOR OF SALINI IMPREGILO S.P.A. Multi-disciplined contractor across road and bridge building, paving, and land development CANADA Acquired 100% of Business Operations Road and bridge maintenance contractor CANADA ADVISED ON SALE OF COMPANY Construction company / Port operator CHILE Acquired Majority Control of Business Operations Concession to operate and maintain a port terminal CHILE ADVISED ON SALE OF COMPANY Infrastructure fund FRANCE Acquired Majority Control of Business Operations Ski resorts manager FRANCE ADVISED ON SALE OF COMPANY Global developer, investor and manager of infrastructure UNITED KINGDOM Acquired Investment Interest in Seller’s Business 4G PPP toll road concession COLOMBIA ADVISED ON PURCHASE OF COMPANY IMAP All-encompassing solar company FRANCE Acquired 100% of Business Operations 2 Solar Farms with 2.8 MW installed capacity SPAIN ADVISED ON ACQUISITION Auras de Guijo and Aura de Agudo
- 16. 31 30 ABOUT IMAP ABOUT IMAP IMAP GLOBAL REACH Our cross-border experience extends across Europe, the Americas, Asia and Africa 450+ PROFESSIONALS WORLDWIDE 43 COUNTRIES 60+ OFFICES North America U.S.A. Boston Chicago Dallas Denver Detroit Greenville Greenwich Houston Los Angeles Naples New York Philadelphia Richmond San Diego San Francisco St Louis Tampa Washington DC Canada Toronto Vancouver Latin America Argentina Brazil Chile Colombia Mexico Peru Panama Africa Congo Egypt Ghana Ivory Coast Mauritius Morocco Nigeria Senegal South Africa Asia China India Japan Thailand Europe Belgium Bosnia & Herzegovina Croatia Czech Republic Finland France Germany Hungary Ireland Italy Netherlands Poland Portugal Russia Serbia Slovakia Slovenia Spain Sweden Turkey United Kingdom ABOUT IMAP INTERNATIONAL MERGERS & ACQUISITION PARTNERS Consistently ranked among the Top 10 middle market M&A advisors worldwide GLOBAL PERFORMANCE 2020 450+ TEAM OF IMAP PROFESSIONALS WORLDWIDE 218 M&A TRANSACTIONS 47 YEARS OF M&A EXPERIENCE IN THE MIDDLE MARKET $12.5bn TRANSACTION VALUE 60+ OFFICES IN 43 COUNTRIES 30% CROSS-BORDER DEALS 1 PwC 2 KPMG 3 Deloitte 4 Houlihan Lokey 5 Rothschild 6 IMAP 7 EY 8 Oaklins 9 Goldman Sachs 10 Lazard $12.5bn CLOSED DEAL VALUE 2020 6th IN THE WORLD GLOBAL PERFORMANCE ENTREPRENEURIAL SPIRIT • IMAP is a partner-driven, client- focused and independent M&A advisory. • Senior experience and hands on involvement in deals – 230 Senior Transaction/ Transaction Advisors. • Worldwide IMAP team comprising 450+ professionals. MIDDLE MARKET FOCUS • Sell-side advisory for primarily privately held companies and spin-offs from large groups. • Strategic acquisitions for international corporates. • “Sweet –spot” Transaction Values $20 – 250 million. • Strong PE and Family Office Coverage. GLOBAL REACH • Proven cross-border advisory practice. • Global sector & project teams across 15 sector groups. • Leveraging local knowledge and corporate access in all relevant international markets. EXECUTION EXPERIENCE • IMAP has closed over 2,100 transactions valued at $90 billion in the last 10 years. Ranking based on number of transactions closed in 2020. Undisclosed values and values up to $500 million. Source: Refinitiv and IMAP internal data. Building Products & Services Business Services Consumer & Retail Energy & Utilities Financial Services Food & Beverage Healthcare Industrials Materials, Chemicals & Mining Real Estate Technology Transport & Logistics Automotive Education & Training 4% 9% 9% 7% 7% 7% 12% 6% 5% 14% 6% 4% 5% 5% DEAL DISTRIBUTION BY SECTOR
- 17. Report Contributors IMAP Contact: IMAP, Inc. Balmes 151, 1st floor 08008 Barcelona - Spain T. +34 936 026 710 www.imap.com © IMAP, Inc. 2020 International M&A Partners BILL SPRAGUE Managing Director Capstone Headwaters – IMAP USA william.sprague@imap.com GONÇALO VAZ BOTELHO Managing Partner & CEO Invest Corporate Finance – IMAP Portugal goncalo.botelho@imap.com ENRIQUE VARGAS Vice President Inverlink SA – IMAP Colombia Bogota, Colombia enrique.vargas@imap.com SERGIO MILIC Director South Andes Capital – IMAP Chile sergio.milic@imap.com