The Risks and Rewards of Government Partnership

As governments increasingly step into the private sector, investors must consider the risks and rewards of government partnerships. This shift presents opportunities for de-risking investments, especially when aligned with government policies. However, it also comes with challenges, such as the potential for policy changes affecting investments, as seen in the solar industry in 2008. Understanding different sectors and geographies where governments are becoming more active is crucial for investors to evaluate potential new partners in deal making. Additionally, combining an understanding of the local concerns and political environment with a future-oriented perspective on market direction is essential for successful underwriting deals.