The $1 trillion infrastructure legislation that passed last year introduces important issues for middle market businesses.
Key takeaways
Many executives say they are ready to invest, sensing multiple benefits to rebuilding America’s essential systems.
Considerations for family offices include potential risks and opportunities affecting holdings and investments.
Executive perspectives on investing in infrastructure gives family offices reason to consider
Family offices and wealthy families could benefit from understanding how middle market businesses collectively embrace the $1 trillion infrastructure legislation that passed in November 2021. The RSM US Middle Market Business Index infrastructure report shows businesses are ready to invest, sensing small- and large-scale benefits to rebuilding America’s essential systems.
“The chief investment officers and investment teams for family offices are constantly evaluating risk and opportunities, and the infrastructure plan merits a review of their holdings and how the plan could impact their investments,” says Bill Bijesse, tax principal and global family office markets leader at RSM US. “Identifying private companies that could reap the benefit as suppliers or provide the construction management and technological upgrade for these infrastructure projects is a natural starting point.”
Identifying private companies that could reap the benefit as suppliers or provide the construction management and technological upgrade for these infrastructure projects is a natural starting point.
Bill Bijesse, tax principal and global family office markets leader
At least 63% of senior executives at middle market companies, when asked by RSM about 21 individual initiatives like improving roads and communications networks, said that the improvements would benefit their companies’ operations. The sentiments in favor of fixing basic systems also reflect a growing concern around risk management, with 54% of survey respondents saying the nation’s ailing infrastructure has hurt their businesses.
These perspectives, captured by the proprietary RSM US MMBI survey, introduce important issues for family offices. For example, how might major infrastructure improvements benefit current holdings and help shape long-term investment strategies? On the other hand, considering that many family offices invest in telecom, real estate and raw materials, which companies are likely to face greater risk if the national infrastructure continues to decline?
What industries stand to benefit from federal investments? What specific improvements are in demand? Read the full report to learn more.
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