The investment strategy of the Infrastructure Debt team is to invest in core long-lived infrastructure assets required for growth, a functioning economy, and the provision of efficient, modern, and essential public services. These assets are typically developed under long-term concession agreements and include utility-scale projects related to the energy transition, water-related infrastructure, public-private partnerships, and logistics.

We employ a long-term take-and-hold strategy until maturity, driving sustainable debt structuring practices and making us the ideal long-term partner for infrastructure debt investments. We also target early investment entry (typically pre-construction), enabling us to fine-tune debt structuring where necessary and allowing investors to capture the full asset value.

Our high-quality origination strategy results in superior access to markets and deal sourcing, positioning Infrastructure Debt as the preferred funding partner of choice with sponsors, commercial banks, and development finance institutions. Having managed this strategy on a principal basis for Old Mutual for over a decade, Infrastructure Debt will soon offer this capability to other institutional investors.

The team is exclusively focused on unlisted infrastructure debt, with proven in-house transaction structuring capability and proactive construction and operations monitoring management. We also take significant care in selecting the right investments, focusing on infrastructure assets with a clear business purpose, a real asset base that is costly to replicate, with long-term stable revenue streams, and the ability to service long-term debt.

We only invest in long-dated investment-grade project debt, with a key focus on capital preservation and realising long-term stable cash yields, and is often linked to assets with reduced credit risk and volatility as well as lower rating volatility.

We believe in investing in sustainable investments that measurably contribute towards climate change mitigation and the energy transition, benefitting the environment and local communities. Beyond sustainability, when we think of infrastructure, we also think of renewal, growth, and modernisation. Underscored by this philosophy, we are focused on ensuring that investor capital is responsibly deployed in generating stable risk-adjusted returns while creating healthier, better-serviced societies.

The Infrastructure Debt portfolio has returned very stable low-risk sources of return, uncorrelated with other fixed income asset classes since its inception proving resilient to market and credit cycles. The defensive nature of the asset class was underscored by portfolio performance and valuations remaining robust throughout the COVID-19 pandemic.

In addition to the demonstrably reduced credit risk and volatility, the portfolio has consistently outperformed relevant benchmarks, and given the proactive investment management processes adopted by the team, the portfolio has experienced no capital loss to date. The asset class therefore offers excellent diversification benefits, complementing other alternative investment strategies (including debt or equity).