Private equity firms suddenly short on big buyout targets are revisiting an elusive goal -- the privatization of infrastructure.

The crumbling network of roads, ports and bridges have previously intrigued private equity, but a political backlash derailed a wave of anticipated deals sparked by the Chicago Skyway lease for $2 billion in 2005.

Cash-strapped states might now reconsider their aversion, especially if private equity firms are willing to spend as enthusiastically for infrastructure assets as they were before a credit crunch made public markets unreceptive to them.

"The U.S. is falling apart and needs rebuilding," said Craig Fuehrer, a managing director in the industrials group at Deutsche Bank. "State budgets alone can't handle this."

Infrastructure spending accounted for 3 percent of U.S. gross domestic product from 1950 to 1970, according to a New America Foundation report. Since 1980, that figure has dropped below 2 percent. Citing deficient bridges, overwhelmed airports and shoddy roads, the report finds "a huge accumulated shortfall of needed investment..."

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