The rise and rise of project finance advisory firms

Published: September 20, 2019

The project finance market is growing, with record-breaking deals continuing to make headlines. This has paved the way for a number of boutique advisory firms that can advise clients in this space. 

Over the last few years, we have seen some record-breaking project finance deals, particularly in the renewables space. Ranging from the 1.18 GW Sweihan solar project in Abu Dhabi, the world’s largest solar project, to the Nacala Corridor project in Mozambique, the largest infrastructure project in Africa, megadeals have dominated the headlines and set the tone for the market more generally.

Factor in population growth, urbanisation, and the realities of climate change, and it is clear that the need for better infrastructure is not going away. According to a 2016 report by the McKinsey Global Institute, current investments of US$2.5tn a year on transportation, power, water and telecoms, are being made. We should be, however, spending US$3.3tn in order to meet expected economic growth. That means there is an annual US$800bn funding shortfall, with emerging economies accounting for 60% of the added demand. 

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