MSEP’s investment themes target fragmented industries after concluding extensive research on the opportunities and risks. Our network of industry veterans connects us with unique and attractive investment opportunities often not available to investment firms with a broad general approach.
Our knowledge of the industry provides us with better views toward exit opportunities, including identified buyers, and a better understanding of how to maximize returns.
MSEP’s first platform, established in 2013, focuses on investments in infrastructure services. We believe that the risk-return profile generated from this segment is more attractive than those generated in direct infrastructure projects. The large deficit that has accumulated over the years is driving overall demand for rehabilitation and inspection of existing infrastructure, in addition to new infrastructure spending required to keep pace with global growth. Furthermore, monetary spending on projects and rehabilitation of existing infrastructure is largely uncorrelated to general economic cycles.
Examples of businesses in infrastructure services include:
- Underground utility and sewer maintenance;
- Power grid maintenance;
- Road and highway services;
- Service businesses to airports, railways, and other transportation hubs; and
- Businesses servicing hospitals and other large scale infrastructure projects.