Public-Private Partnerships have emerged as one of the most common models for generating private investment in infrastructure. However, there is still significant debate surrounding which factors drive P3 project results. While many P3 deals have proven to be a success and generated numerous benefits, others have resulted in failure and bankruptcy. This paper analyzes one such case, the 2006 Indiana Toll Road Concession. Celebrated as a landmark deal that would serve as a model for future P3 deals, the project resulted in a 2014 bankruptcy filing. The project suffered from the broader economic impact of the Great Recession, but the project ultimately failed because of deal-specific flaws. Analysis of the deal and its impact shows that (1) P3’s can generate social welfare so long as the public allocates sufficient risk to the private partner and (2) private parties suffer when they overbid for projects, despite many incentives to do so.