Europe’s airports have had a tough time of it the past few years. In 2010, the massive ash cloud from Iceland’s Eyjafjallajökull volcano canceled tens of thousands of flights, and the ongoing global financial crisis continues to stunt airline traffic; however, many long-term investors see opportunity in the challenging environment.

The 2012 Editorial Advisory Board of Institutional Investing in Infrastructure (I3) met in Chicago Nov. 8–9, 2012, following the Institutional Investing in Infrastructure conference Nov. 5–8 to discuss the challenges that face participants in this market. Board members were assigned topics (see “Food for Thought Topics,” to the right) and gathered in groups to discuss and report their conclusions to the board. Board members also participated in quick tally surveys (see, “Quick Tally Poll Results,” page 26). All discussions are facilitated by Geoffrey Dohrmann, president and CEO of Institutional Real Estate, Inc., and publisher of I3. The following is an excerpt of discussions regarding survey results from the 2012 board meeting. Dohrmann spoke with a number of Editorial Advisory Board members and discussed the topic of having a seat for LPs on an investment’s board of directors — an LP advisory committee. 

Project finance banks have reined in lending during the recession and new regulations enacted post-global financial crisis have further restrained debt capital, leaving many infrastructure borrowers with less favorable terms or even without terms. Nowhere is this more apparent than in Europe, where banks have long been project financiers to the world. At the end of 2012, several major fund managers launched new dedicated infrastructure debt teams out of London, betting on Europe to become the place where this long-promised area of investment comes of age.