RBC Capital Markets is the latest to establish an infrastructure finance team in Sydney, which was announced on Wednesday.
Reuters reports that the new team of four infrastructure specialists come from Rothschilds. Who is on the new RBC team? Dominic Hudson comes on board as managing director and head of infrastructure, Stan Nikiforou as director, Tim Foy as vice president, and Matthew McKenna as manager.
Salaries have been increasing in recent years, as well as bonuses, in the infrastructure space. Those with a specific skill set that is in demand can expect a premium, with sign-on bonuses also being paid in some cases.
A consultant from a leading Sydney search firm says the shortage of suitably experienced infrastructure professionals in Australia shows demand is starting to outstrip supply. As well as current teams being bolstered, there are new teams being established. The consultant says in one week alone recently five infrastructure teams were established .
Macquarie Bank is arguably the pioneer of modern infrastructure finance, and has now become one of the largest non-government owners of infrastructure assets in the world. Goldman Sachs is not far behind. The bank has raised a quarter of its new US$3bn infrastructure fund, according to Financial News, as other investment banks, private equity firms and fund managers target the sector.
There have been new teams set up in Sydney to cash in on the infrastructure growth as more funds are being raised to invest in the infrastructure assets. Other Australian infrastructure players include Hastings, Challenger, Babcock & Brown, and AMP Capital.
The level of investment into this “alternative” investment class, along with private equity, has only just begun. It is likely that there will be continued competition and hiring in this space.