KKR/infrastructure: Building bridges

Is infrastructure the latest way to play economic distress? KKR is raising a $5bn infrastructure fund and Morgan Stanley recently closed a $4bn fund. It seems like an odd time to plunge into infrastructure given such deals depend heavily on leverage and banks are eschewing loans. But the US housing meltdown has hurt states’ and municipalities’ finances. That could encourage them to sell or lease infrastructure, especially with prices for building materials like cement increasing. Funds like KKR’...