MATH Briefing - 2nd Quarter 2016: Investing in America’s Infrastructure: Challenges and Solutions to Close the Funding Gap
DescriptionPrivate investment is critical to close the funding gaps in our nation’s infrastructure left by strained public coffers at all levels of government across the United States. It is imperative that additional investment is unlocked to augment the public funds allocated for infrastructure spending. At the end of 2015, Congress passed the FAST Act, authorizing over $300 billion in spending through fiscal year 2020 on surface transportation programs including rail, highway, and public transportation. Yet it is apparent that the magnitude of investment needed to fully repair and upgrade aging infrastructure across the United States, estimated by the American Society of Civil Engineers to cost over $3 trillion by 2020, requires a paradigm shift in thinking. This briefing will explore some of the innovative approaches that are available to tap into previously unused sources of capital and what role public policy can play to spur on widespread private investment in infrastructure across industry sectors and meet the requirements of the U.S. economy in the 21st century.
Tyler Duvall is a principal with McKinsey & Company and leads McKinsey’s work with public sector infrastructure agencies and investors in infrastructure assets. He has also worked extensively developing strategies for nonprofits. Prior to his time with McKinsey, Duvall was both the undersecretary (acting) and assistant secretary for transportation policy at the U.S. Department of Transportation following his confirmation by the U.S. Senate in 2006. Prior to joining the Department of Transportation, Duvall worked for Hogan & Hartson LLP (now Hogan Lovells) as a business and finance lawyer focused on mergers and acquisitions. He has a J.D. from University of Virginia Law School and a B.A. in Economics from Washington & Lee University.
Susan Gray is the global head of infrastructure for Standard & Poor's newly established sixth global practice, which includes project finance, midstream energy, oil refining, merchant power, renewables, airports, roads, ports and public-private partnerships. She also leads Standard & Poor's efforts to uphold its leading role in providing credit benchmarks, ratings and analytics to the infrastructure market. Previously, Gray was head of infrastructure sponsor coverage and head of airports at Macquarie Capital in North America. While at Macquarie she also worked in Asia, Australia and the Americas. Prior to joining Macquarie, Susan served as an advisor to the Australian government on trade policy, industry policy and labor policy. She is a trustee of the internationally regarded Lower East Side Tenement Museum in New York and an NACD Fellow. Susan holds an honors degree in economics and a law degree from the University of Sydney.
Keith Hennessey is a principal vice president and the head of Bechtel’s Public-Private Partnership business with responsibilities for managing Bechtel’s P3 equity investing and financing, design-build and operations and maintenance activities. Previously, Hennessey was the manager of strategy and business development for Bechtel Infrastructure. He also served as the executive assistant to Bechtel’s CEO. Hennessey has over 20 years of experience in the investment banking industry. Previously, Hennessey worked for Morgan Stanley and Bank of America in a variety of roles including global chief operating officer and head of the U.S. industrial group at Morgan Stanley Investment Banking and head of Bank of America’s Diversified Industrial Group. Hennessey graduated from Georgetown University and received an M.B.A. from Harvard Business School.
James Pass is senior managing director, municipal and infrastructure sector manager and portfolio manager at Guggenheim. Pass joined Guggenheim in 2009 and is responsible for the research, development and implementation of investment strategies for the firm’s municipal obligations, including tax-exempt and taxable bonds, Build America Bonds and tax-credit bonds. He is responsible for building and managing the firm’s military housing and municipal hybrid activities, including infrastructure investing. Pass and his Municipal Investment Team increased municipal holdings and were instrumental in launching multiple funds. Prior to joining Guggenheim, Pass was managing director at RBC Capital Markets, where he headed the firm’s Midwest Region. He has spoken to industry associations including the White House Business Council, the National Federation of Municipal Analysts and the National Association of State Treasurers, and has been featured in publications including Bloomberg and the Bond Buyer. He holds a B.A. in diplomatic history and political science from the University of Pennsylvania.
Sandeep Dahiya is an associate professor of finance at Georgetown University's McDonough School of Business and has been on the faculty since 1999. Dahiya spent two years working in the corporate finance and strategy practice of McKinsey and Company, a leading strategy consulting firm. He worked with CEOs and CFOs of Fortune 500 firms in health care, financial services and chemical industries focusing on valuation, mergers and acquisitions, capital markets and risk management issues. He has also consulted for leading law firms on corporate finance issues. His work has been published in the Journal of Finance, Journal of Financial Economics, Journal of Corporate Finance, and Financial Markets, Institutions and Instruments. Dahiya received his Ph.D. in finance from New York University.
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