Signum Global Advisors’ Charles Myers on the investment opportunities that lie ahead for Venezuela

Summary

Charles Myers of Signum Global Advisors discusses the investment landscape in Venezuela after the removal of Nicolas Maduro. He sees a massive multi-sector infrastructure opportunity potentially worth $500 billion over ten years, compares it to Eastern European transitions, and highlights Venezuela's oil reserves and U.S. security/backstop support. He notes defaulted sovereign bonds have already doubled and plans a March trip with investors to meet the new government.

• Maduro's removal has investors considering opportunities in Venezuela.
• Charles Myers sees Venezuela as a major multi-sector infrastructure play up to $500 billion over ten years.
• He compares the transition to Eastern Germany in the 1990s or Hungary and Poland, not Iraq.
• Venezuela's large oil reserves and U.S. strategic interest underpin the opportunity, in his view.
• Defaulted sovereign bonds have doubled in the last three months, so some easy money has been made.
• Myers expects security guarantees through U.S. military presence and a possible U.S. government backstop for private capital.
• He plans a March trip with investors, multinationals, and asset managers to meet the new government.
• The host questions whether oil majors like ExxonMobil or Chevron will return without stronger security guarantees.