Our approach to infrastructure debt
Our breadth of lending, origination capabilities and deep market relationships allow us to offer a range of senior debt investments. These are investment-grade and sub-investment-grade infrastructure projects across the UK, EEA and Canada in fixed-rate, floating-rate and inflation-linked formats. As one of the largest originators of infrastructure debt in Europe (Source: Inframation, July 2023), we have the scale and relationships to source attractive deals the broader market may not see.
Our investment philosophy is focused on managing the downside, given the asymmetric risk profile of debt investing. As such, we lend against core, essential assets with asset security. We place high value on financial covenants, and avoid highly subordinated debt positions. We take the view persistent excess returns come via excellent deal sourcing, not extra risk, and therefore avoid the higher risk parts of the credit spectrum. We also embrace newer sectors and structures that may offer ‘complexity’ or ‘novelty’ premia.
Environmental, social and governance considerations – though non-binding – 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 2023).
Benefits of infrastructure debt
Infrastructure debt investments have a low correlation to market cycles, matching long-dated assets and providing predictable income streams.
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Key risks of infrastructure debt
Explore our real assets range
Outcome-oriented solutions in real estate, across equity debt and long income, through strategies that span the risk spectrum, from lower-risk options generating long-term income to more opportunistic investments.
Our deep market access allows us to source high-quality projects, delivered through a range of debt and equity opportunities. We focus on stable, long-term income generation and efficient execution.
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Real assets multi-asset
Our integrated real asset platform allows us to collaborate with our clients to design bespoke multi-asset portfolios that meet a wide variety of long-term investment and return objectives.
Real Assets Study 2024
Demand remains strong, but the investment drivers are changing. At a time of macroeconomic uncertainty, real assets continue to play a significant role in the investment strategies of global institutions. The sixth edition of the Aviva Investors Real Assets Study is our biggest yet and seeks to answer some key questions.