Our approach

Our breadth of lending, strong origination capabilities and deep market relationships allows us to offer a range of senior debt investments. These are investment-grade and sub-investment-grade infrastructure across the UK, EEA and Canada in fixed-rate, floating-rate and inflation-linked formats.

Environmental, social and governance (ESG) considerations are integrated into our investment decisions and project monitoring. A rigorous investment process allows us to leverage our team’s extensive experience, prioritising senior debt in carefully-structured transactions. Since we began investing in infrastructure debt in 1998, we have never had a payment default (as of 30 September 2019).

Benefits

Infrastructure debt investments have a low correlation to market cycles, matching long-dated assets and providing predictable income streams.

Robust cash flow profiles

This long-term debt is ideal to match long-dated liabilities and can provide predictable income from project cash flows.

Low default risk

Senior debt is prioritised in carefully structured transactions. We have had no payment defaults on our infrastructure to date.

Diversification

Private infrastructure debt has a low correlation to listed corporate bonds and is more resilient to market and credit cycles. This allows investors to access different sectors and types of revenue.

Illiquidity premium

Infrastructure debt typically delivers an illiquidity premium over listed credit.

Favourable solvency capital treatment

For insurers, the asset class receives favourable treatment under Solvency II, and several other regulators are considering similar measures.

Key risks

Investment risk

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested.

Illiquidity risk

Where funds are invested in infrastructure, investors may not be able to redeem any units in the fund when they want because infrastructure assets may not always be readily saleable. If this is the case we may defer a request to redeem units.

Valuation risk

Certain assets held in the fund could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.

Regulatory shifts

The frameworks for managing essential infrastructure services can change.

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