Infrastructure: North America

Investing in Infrastructure
Renewing North Americas foundations

Supporting renewal
of North American
infrastructure

We are one of the worlds leading private equity

firms and a FTSE 100 company with total assets
under management in excess of $16bn*. Since the
1980s, we have been a committed investor in
the infrastructure sector.
By using our insight, networks and financial
resources to support much-needed investment
in North American infrastructure, we will focus
on investing and actively participating in the
transport, water and energy sectors as well as in
social infrastructure. The investments are made
by 3i Infrastructure plc (3IN), a FTSE-250 listed
company. 3IN is exclusively advised by 3is global
network of experienced infrastructure investors.

Meeting the challenge

Across North America, public and private
providers are facing the need to renew much
of the infrastructure created during the early
and middle years of the twentieth century
not simply replacing like with like but developing
infrastructure to meet new needs, such as
environmentally friendly generation and
distribution of power.

A long track record in the asset class

We have been working with management teams
to build great businesses for over 60 years, and
investing in infrastructure for over 20 years.
3i understands that infrastructure is an important
and attractive asset class, because it typically
offers stable demand and cash flows, often
linked to inflation, and is more resistant to volatile
economic cycles. Our experience across the UK
and Europe and more recently in Asia has
resulted in deep insight into the innovative
models now being used to finance and run major
infrastructure projects, such as public-private
partnerships (P3s). Management teams, public
and private sector partners, and service
providers can all draw on our experience and
flexible investment approach to address market
conditions, key stakeholder concerns and
regulatory requirements which can vary widely
across county, state and national borders.

Some estimates place the cost of the imminent

US infrastructure renewal at $2.2tr but with
continued pressure on tax revenues and public
sector finances, together with uncertain
conditions in capital markets, infrastructure
providers are finding it challenging to access
the necessary resources. As a committed
infrastructure investor, 3IN has the resources,
commitment, expertise and long-term approach
to make an important contribution.

*as at 30 September 2008

$2.2tr
required to renew aging
US Infrastructure

3IN deploys permanent

capital with the intention to
hold assets for the long term.

A substantial portfolio with attractive,

stable returns
3i plans to use its global experience and local
networks to build a substantial portfolio of
North American infrastructure investments for
3IN that earn attractive, low-volatility returns.
3IN is interested in investing in infrastructure
assets at all stages, from initial commissioning
to the operation of mature assets with established
and stable revenue streams. The investments will
focus on four categories of asset:

Transport infrastructure, including highways,

bridges and airports.

Energy and power including midstream energy,

renewables, power generation and distribution.

Water, including distribution and waste

water treatment.

Social infrastructure, including schools,

courts and defense facilities.

Each equity investment will usually fall within

the range $50m to $250m. 3IN invests on both
a minority or majority basis, as a sole investor or
in partnership with others. We aim to work with
a wide range of infrastructure providers in the
public and private sectors.

Building value by taking a long-term view

For each investment, an important consideration
is the scope that will exist for 3i to add value,
using its global expertise to contribute to strategic
and operational decisions, and ensure the highest
standards of safety and corporate governance.
Unlike most infrastructure funds, which typically
have five- to seven-year investment timeframes,
3IN deploys permanent capital with the intention
to hold assets for the long term. We take a longterm partnership approach to working with
experienced management teams, supporting
businesses as they develop and optimize
performance at all stages of the economic,
business and asset life cycles.

Long-term commitment
As an investment class, infrastructure is a compelling
proposition. Infrastructure businesses are asset-intensive;
they provide essential services, often on a regulated
basis, and provide revenues that are typically
underpinned by long-term, inflation-linked contracts.
As a result, infrastructure businesses offer investors
a combination of stable returns and the potential for
capital growth that is relatively non-correlated to the
economic cycle.

Our team
Cressida Hogg, Managing Partner, 3i Infrastructure
+44 20 7975 3420 cressida.hogg@3i.com
Cressida joined 3i in 1995, having previously worked at JP Morgan. Before starting 3i's infrastructure
team in 2005, Cressida worked on a wide rage of MBO and private equity deals. Recently, she has led
3i's investments into AWG and I2, a secondary PFI investment fund. She has a BA (Hons) in Politics,
Philosophy and Economics from St John's College, Oxford, and an MBA (with Distinction) from London
Business School.

Robert Stefanowski, New York Chairman and Managing Partner, North America
212 848 1426 robert.stefanowski@3i.com
Bob is a member of 3is Management Committee. He is responsible for the development of 3is
investment strategy across North America. Prior to 3i, he was President and CEO of GE Corporate
Finance Europe. Other senior roles at GE included President and CEO of GE Media and Communications
Finance, as well as senior roles in M&A, Finance and Sales. Bob spent five years in public accounting
with PwC, was a litigation consultant with Freeman & Mills and a Managing Director for a Fortune 500
services firm. He has a BS from Fairfield University and is a University of Pennsylvania/Wharton Fellow.
Bob serves as an adjunct faculty to NYU Stern School of Business and the London Business School.
He also serves on the boards of two non-profit organizations.

Mark Murtagh, New York Principal

212 848 1474 mark.murtagh@3i.com
Mark heads up 3is Infrastructure team in North America. Prior to 3i, Mark spent six years at Liberty
Partners, a private equity fund, where he led numerous leveraged buyouts and going private
transactions in the business services and education industries. He has also worked for Ernst & Young
in their Transaction Advisory Group in New York and in their Energy Group in Moscow and Jakarta.
Mark has a BBA in Accounting from The College of William & Mary, where he is on the board of the
Earl Gregg Swem Library. He is also a Director of the New York Private Equity Network.

Reginald Chambers, New York Vice President

212 848 1476 reginald.chambers@3i.com
Reggie has extensive infrastructure transactional experience in the energy and utilities sectors. Reggie
was previously a Vice President in the Global Energy Investment Banking Group of Citigroup Global
Markets Inc. and a corporate lawyer with Ura Menndez Abogados in Madrid, Spain, and Simpson
Thacher & Bartlett LLP in New York. He earned his Juris Doctorate from Harvard Law School and his
undergraduate degree from Duke University.

Michael Obhof, New York Associate

212 848 1469 michael.obhof@3i.com
Michael is an Associate focusing on infrastructure investments in North America. Prior to joining
3i, Michael was an Analyst in the Infrastructure Investment Banking Group at Citigroup Global
Markets Inc. where he focused on transactions within the transportation, utilities and energy sectors.
Prior to joining Citigroup, Michael worked in the M&A Group at KeyBanc Capital Markets where
he focused on metals and mining transactions. Michael has a BA with Honors in Economics from
Ohio State University.

About 3i
3i is a world leader in private equity.
We focus on Buyouts, Growth
Capital, Infrastructure and Quoted
Private Equity and invest across
Europe, Asia and North America.

Our competitive advantage comes from

our international network and the strength
and breadth of our business relationships.
These underpin the value that we deliver
to our portfolio and to our shareholders.

Internationally connected
Asia: Beijing, Mumbai, Singapore
Europe: Aberdeen, Amsterdam, Copenhagen, Frankfurt,
London, Madrid, Manchester, Milan, Paris, Stockholm
North America: New York

3i Investments plc is authorised and regulated by the

Financial Services Authority. TTP ref: 8179:3. 3i ref: M64308

www.3i-infrastructure.com
www.3i.com