NEW YORK (TheStreet) -- President Obama's efforts to push for new investments in infrastructure to boost the economy and create jobs may indirectly benefit banks such as JPMorgan Chase ( JPM); Goldman Sachs (GS); Macquarie, and private equity group Carlyle.
These institutions have already created funds to invest in private capital and infrastructure, says Peter Peyser, managing principal of Blank Rome Government Relations.
Obama's program calls for $50 billion worth of investments in the nation's roads, railways and airports. So far much of the capital that banks and private equity funds have raised has been sitting on the sidelines.
"If spending increases these banks will finally find a ways to get this capital moving. These companies all raised infrastructure funds a couple of years ago and this would get dealflow running through the pipeline," Peyser said.Peyser said these banks will get a return on the investments they make in infrastructure immediately by depreciating the assets, such as toll roads. He also said that the banks are able to negotiate an increase in tolls on roads over time. Most toll roads have a 99 year lease timeframe, according to Peyser. --Written by Maria Woehr in New York.
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