Minneapolis, MN – North Sky Capital’s Adam Bernstein shared his insight with Pensions & Investments, discussing how the $2 trillion Build Back Better Act could boost renewable energy projects and increase infrastructure investment opportunities.
Biden’s $1.2 trillion infrastructure bill has already received a strong positive response from infrastructure managers, with a much broader scope covering everything from broadband to transportation and energy transmission. In contrast, the Build Back Better Act provides more near-term potential and a specific boost for renewable energy projects while taking a more targeted approach on technologies. Adam pointed out that the bill supports renewable technologies, such as biofuels and solar power, and will also increase infrastructure investment opportunities.
The Build Back Better Act was passed by the House of Representatives on November 19 and is now before the Senate. The bill has the capacity to produce jobs in the immediate future and will likely entice private capital to accelerate the building of clean power plants, increase investments in new US manufacturing facilities and boost electric vehicle infrastructure, among other projects.
Despite the infrastructure law’s recent signing, managers do not anticipate increased funding for infrastructure investment projects for more than a year to allow money from the federal government to be disbursed to state and local governments through new and existing mechanisms.
As Adam noted, “The actual opportunity for an infrastructure investor, by and large, won’t materialize for a year plus.”
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About North Sky Capital
North Sky Capital is a pioneer in impact investing in the United States. Now in its 21st year, North Sky has deployed more than $1.1 billion across 125 impact investments on behalf of its ten impact funds. The Firm’s active investment strategies focus on impact private equity (secondary strategy) and sustainable infrastructure (direct strategy) that support positive environmental and social change while targeting market rate investment returns. Since 2010, North Sky’s sustainable infrastructure funds have deployed approximately $630 million in 33 middle market infrastructure investments across the clean energy, waste and water sectors in North America. Based in Minneapolis with additional offices in Boston and New York, North Sky is one of the most active impact investment managers. For more information, visit northskycapital.com.