Fitts Quoted on M&A Asset Valuation Alternatives Surrounding Infrastructure Funds

Inframation News

Partner Sarah Fitts was quoted on a valuation alternative that recently emerged for assets used in mergers and acquisitions that are reaching the end of their initial power-purchase agreements.

Last year, there were several transactions where funds cashed out their limited partners and raised new capital via a secondaries fund or continuance fund. This, however, is not viewed as a clear path toward monetization.

“It does create a conflict of interest of sorts between the fund manager and the limited partners that want to invest in the new fund,” Sarah said. However, she also noted that some of these investors have stayed in the game as an operator of assets, after having sold down its equity interests.

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