Jennifer Skylakos and Daniel Hall, Co-Heads of DHR’s Sustainable Infrastructure & Energy Practice, along with Nick Kato, Founder and Managing Partner of Leo Berwick, discuss the key considerations for European infrastructure and energy private equity funds entering the U.S. market.
Over the past decade, the U.S. has attracted substantial foreign investment due to its status as the world’s largest economy and a hub for innovation. Factors such as favorable regulatory changes, including the Inflation Reduction Act, have created significant opportunities in the renewable energy sector.
While typical private equity has slowed down in the U.S., investments in infrastructure, renewable energy, and energy transition have surged over the past two years. There is considerable growth and interest in areas like P3s, digital deals, transport, regulated utilities, and social infrastructure. The aging infrastructure in the US further supports accelerated growth in these sectors.
As European funds explore opportunities in the U.S. market, it’s crucial to consider many factors. Whether you aim to diversify your portfolio, capitalize on sector expertise, or forge new alliances, understanding these considerations and strategically navigating the complexities of investing in the U.S. will be key to achieving sustainable growth and maximizing returns.