Angenika Kunne outlines Aviva Investors’ infrastructure equity strategy and the key themes driving origination, management and value creation.
Read this article to understand:
- How we source compelling infrastructure equity opportunities
- The role active asset management plays in creating value
- The importance of flexible exit strategies
Infrastructure equity continues to be one of the world’s most active investment markets, driven by many of the megatrends shaping the global economy, including the energy transition, the need for climate resilience, demographic change and tech innovation. But while opportunities appear plentiful, investing successfully requires a rigorous process of selection, management and value realisation.
In this Q&A, Angenika Kunne, head of infrastructure equity at Aviva Investors, explains her vision.
Angenika, since joining Aviva Investors two years ago to lead the infrastructure equity business, what priorities have been guiding you?
My primary goal is to deliver strong risk-adjusted returns for our clients, guided by three core pillars of value creation and robust risk management:
- Disciplined origination
- Active asset management
- A flexible exit strategy
Which characteristics matter the most when looking at potential infrastructure investments?
Our origination focuses on real growth sectors driven by structural demand and long-term relevance, rather than relying solely on inflation-linked revenues. We see the most compelling opportunities and attractive relative value in real growth sectors such as the energy transition, sustainable transport and digital infrastructure. Each is underpinned by macro trends such as technological advancement, demographic changes from ageing populations to urbanisation, and geopolitical shifts, which continue to drive long-term sustainable infrastructure demand across Europe.1
We focus on growth capital in the lower to mid-market infrastructure space (typically €50 to €100 million equity tickets), backing proven teams and business propositions. We look for businesses and platforms that are commercially viable, demonstrate longevity, and are critical to the functioning of the economy and society. These opportunities must generate predictable, long-term cash flows and fit our disciplined risk appetite. Notably, we don’t take technology risk. Ultimately, these businesses should demonstrate strong fundamentals and the ability to evolve as markets develop.
Diversification is another core component of our investment strategy. We invest across a wide range of sectors, technologies and jurisdictions, gaining exposure to both established and emerging infrastructure themes while maintaining a balanced risk approach.
What is your approach to sourcing compelling opportunities?
Our origination is guided by deep internal and external sector expertise, supported by our research and policy teams who analyse regulatory, technological and macro trends. Their insights feed into our quarterly sector reviews, helping us target the most attractive areas to focus our sourcing efforts. We take a patient, long-term view and often monitor emerging sectors for years before the right proposition for institutional capital arises. Throughout this period, we evaluate market participants and key intermediaries to create pathways for direct engagement. At the same time, we aim to build relationships and deepen our understanding of market dynamics so that, when the right opportunity appears, we can move quickly and with conviction.
The team has deep experience across the infrastructure spectrum, including less mature sectors. Through our Climate Transition Infrastructure strategy, we were early movers into the fibre and EV charging spaces. We have continued to expand into new areas, most recently into the German battery storage market via Terra One and into industrial decarbonisation through our partnership with the Irish energy player, Astatine.
We place strong emphasis on transaction structuring, favouring structures that enable close alignment with management teams, support effective governance and embed ESG considerations. This often includes bespoke governance frameworks and performance-linked mechanisms designed to reinforce long-term value creation.
We focus on opportunities away from competitive processes, favouring bilateral sourcing where we can. Competitive auctions often drive valuations above companies’ intrinsic value. If the average bid in an auction reflects the “true” market price, then by being the highest bidder you’ve already overpaid. Bilateral sourcing helps us avoid this dynamic, build deeper relationships with management teams, structure investments closely to the needs of the company and ensure alignment and downside protection.
Can you give an example of an investment that reflects that philosophy?
Our investment in ITS Technology Group (ITS) reflects our focus on real growth sectors underpinned by the long-term digital transformation. As a business-to-business fibre connectivity provider across commercial districts in England and Wales, ITS plays a critical role in enabling digital infrastructure through its wholesale model. The company has built strong market credibility, securing Tier-1 Internet Service Provider partnerships and earning multiple industry awards, including a recent ranking of 31st in the Sunday Times Top 100 Tech 2026 list in the hardware category.2 With its network now covering up to a third of the UK business market, we believe ITS is well positioned to capitalise on growing demand for reliable and high-capacity connectivity.
How would you describe your approach to asset management?
It is hands-on and collaborative. Our team works closely with portfolio companies to drive strategic, operational, and financial value, maintaining an active dialogue with management teams on a weekly basis. We adopt a “support and challenge” role, providing guidance while constructively questioning assumptions to ensure the best outcomes.
Robust data collection and analysis are central to this approach. By monitoring performance metrics and market signals, we can steer businesses proactively, pivoting strategy when needed and responding effectively to threats and opportunities.
Our dedicated private-market sustainability team plays a critical role in supporting portfolio companies. They conduct net-zero audits at entry to assess firms’ transition potential and provide tailored recommendations. They also facilitate engagement workshops to strengthen their ESG governance, reporting and transition planning.
Operational excellence remains a focus for us throughout the holding period. As companies mature, we support capital structure optimisation and cost efficiency initiatives to strengthen their financial resilience. Achieving scale is another key lever. We support organic growth, bolt-on acquisitions and strategic mergers to build platforms with defensible market positions.
Could you share some examples of asset management in action?
Connected Infrastructure Capital (CIC) is a leading onshore wind developer in Northern and Eastern Europe. When CIC sought to enter the Danish battery energy storage system (BESS) market, we moved quickly, drawing on our BESS experience in other markets, including insights from Terra One (a German portfolio company in the BESS market). We worked with CIC to assess strategic fit, review the financial model, challenge assumptions, and evaluate procurement and delivery risks. CIC valued this flexible, hands-on partnership; our input helped shape the investment decision and enabled CIC’s strategic diversification in the Nordics. The ready-to-build Danish BESS project complements its Swedish operating wind farm and Polish development pipeline.
Innovo Renewables provides another illustration. After our initial investment in 2023, we supported its shift from developer to Independent Power Producer (IPP), including a major acquisition of ready‑to‑build solar projects in Italy. We increased our stake to 45 per cent, to accelerate Innovo’s ambition to become a leading European IPP and strengthen its platform. We also encouraged Innovo to seek tactical M&A to support its growth and enhance the resilience of its returns. It sourced bilateral ready-to-build opportunities and identified a strategic energy performance certificate (EPC) target aligned with the platform’s long-term objectives. We worked closely with Innovo on the evaluation, acquisition and integration of these assets, helping the company build in-house capabilities and move towards long-term ownership and operation, blending partner-led initiatives with our strategic stewardship.
How do you approach exits?
We begin considering potential exit routes even before the investment is made, as this is when the majority of the value crystallises, ensuring the business model and growth strategy are aligned with long-term value maximisation. Throughout the holding period, our team continually reviews market appetite and sector trends to keep multiple exit options viable.
Flexibility is central to our approach. We position companies to appeal to both strategic industrial buyers and financial investors by building scalable platforms with strong ESG credentials. Our open-ended structure also provides the flexibility to hold assets until full value has been crystallised, avoiding premature exits. Moreover, this structure positions us to navigate macroeconomic headwinds effectively, while upholding our fiduciary responsibilities and benefiting from strong oversight through our Investment Committee and governance framework.
We aim to deliver well-timed exits that reflect the transformation achieved under our ownership, generating strong returns and successful transitions for each portfolio company.
What excites you the most about the opportunities ahead for infrastructure equity at Aviva Investors?
I’m excited for the future because we’re positioned at the centre of Europe’s energy, digital, and industrial transformation. The scale of the opportunity, combined with a growing, high‑calibre team and a strong investment pipeline, gives us real momentum. Although no investment is without risk, I believe we have the platform and expertise to build a market‑leading franchise that delivers superior long‑term value for our clients.
