Citigroup wins PA turnpike auction

May 20, 2008

We've noted that private equity firms were gung-ho to get into infrastructure projects. The latest sign: Citi Infrastructure Investors and two partners--Abertis Infraestructuras and Criteria CaixaCorp, both of Spain--offered $12.8 billion for the rights to lease the Pennsylvania state turnpike for 75 years, Gov. Ed Rendell announced. The state sought such a deal, which will require the private equity entity to operate and maintain 500 miles of highway, to raise funds. Other bidders included Goldman Sachs and the Macquarie Infrastructure Group of Australia, a big global player in this arena, notes the AP. We'll undoubtedly see a lot more deals of this nature. Kohlberg Kravis Roberts reportedly has raised a $10 billion infrastructure fund.

For more:
-here's the AP article