Salient to Investors:
Luca Molinari at Warburg Pincus is targeting infrastructure service providers in Brazil which will grow significantly in the coming years.
BTG Pactual Participations and Carlyle Group also seek to profit from investments needed to upgrade Brazil’s infrastructure for the World Cup and 2016 Summer Olympic Games.
Eduardo Centola at Banco Modal said:
Equipment-rental companies have margins exceeding 30 percent on EBTDA versus 10 percent to 15 percent for firms that operate infrastructure projects.
Rental companies that target the energy and transportation infrastructure industry are particularly attractive because they can borrow to buy the equipment and benefit from steady cash flow.
Private-equity funds are just realizing the opportunity they have investing in renting equipment to wind farms, ports, road, railroads and airport projects.”