Infrastructure
Our specialized Infrastructure team, which has significant resources around the world, seeks investment opportunities capable of generating long-term sustainable performance.
Experienced team
We have a large and experienced team of infrastructure specialists. The team is well placed to leverage its extensive networks and deep research capabilities to source attractive investments across economic and concession infrastructure markets, creating positive outcomes for our clients.
Opportunity
Through our infrastructure equity offering, we give our clients the opportunity to invest directly in core and concession infrastructure assets that provide essential public services and that generate economic growth. These assets can provide attractive, stable and more predictable long-term returns given their importance in a functioning society.
Core infrastructure
Our core infrastructure investment philosophy centers on our belief that infrastructure is a long-term asset class capable of delivering attractive, consistent returns to investors.
The core infrastructure that makes modern life possible presents compelling investment opportunities – including potential for consistent long-term yields that can be aligned to investor needs.
In the Diversified Assets team our focus is on providing genuine diversification. We do this by identifying and capturing the best long-term opportunities across a broad range of asset classes. Typically, we access alternative asset classes through listed investment companies and traditional asset classes through specialist teams within Target Capital Assets. Our tailored approach considers ESG factors within asset classes as well as in the asset allocation process. It is supported by our centralized Stewardship and ESG Investment team.
All clients invest to create a better future for themselves and their families. This may be to fund their lifestyle or for their own retirement. Now, they can invest to promote a better future for our planet and for subsequent generations, by embracing ESG. Our Diversified Assets approach is designed to target that better future for our clients and to help towards building a sustainable future for generations to come.
Our approach
Putting sustainability center stage
Infrastructure, such as transport, energy and digital networks plays a critical role in tackling sustainability challenges including climate change. We assess environmental and social risks and opportunities alongside all other material factors and seek out opportunities that support sustainability outcomes – recognizing their investment potential as well as their importance for the planet.
Seeking out long-term, lower-risk returns
Infrastructure is uniquely placed to offer potential for reliable, repeatable long-term returns to investors in line with their objectives. By selectively investing in high-quality European, American, Australia, Asian and African infrastructure, that’s already operational, we look to reduce risk and can generate returns on many assets right away.
Targeting opportunities in the European small-mid market
For us, Europe’s small to mid-sized infrastructure markets are the most compelling. With less competitive coverage than larger peers, they still offer a wealth of quality infrastructure assets providing essential services and – therefore – highly reliable cashflows.
Core Infrastructure Portfolio
Nordic Power
In June 2020, we acquired 55% of Nordic Power AS, a portfolio of 13 newly commissioned hydropower plants from Nordkraft, a Norwegian utility controlled by the Narvik Municipality. Since acquisition, we have added an additional two plants to the portfolio, taking the total projected annual output to 160 GWh.
Key attractions:
Attractive return and yield profile
Core, power generation asset
Proven technology, low operating risk and long asset lives
Exclusive option over pipeline of new plants.
Sector: energy
Subsector: hydro
Geography: Norway
Ownership: 55%
Rock Rail
Rock Rail Moorgate
Acquired February 2018. 25x6 carriage electric Siemens trains, serving Great Northern franchise Moorgate commuter lines, operated by Govia Thameslink Railway. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.
Sector: transport
Location: UK
Ownership: 94%
Rock Rail East Anglia PLC
Aquired October 2018. 20x12 carriage electric Stadler trains, 24x4 and 14x3 carriage bi-mode Stadler trains serving the InterCity, Stansted Express and Regional lines of the East Anglia Franchise, operated by Abellio. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.
Sector: transport
Location: UK
Ownership: 48%
Rock Rail South Western
Aquired June 2019. and 30x5 carriage electric Bombardier trains, serving key London commuter services on the South Western franchise, operated by First MTR. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.
Sector: transport
Location: UK
Ownership: 45%
Rock Rail West Coast
Aquired December 2019. 10x7 carriage electric Hitachi trains and13x5 carriage bi-mode Hitachi trains serving the West Coast Partnership Franchise, operated by First Trenitalia. Long term profile secured through lease arrangements with strong contractual obligations. No volume risk, no financing risk, inflation linkage and yield from day one.
Sector: transport
Location: UK
Ownership: 94%
Auris Kaasunjakelu
In June 2019, we acquired 50% of Auris Kaasunjakelu, the largest natural gas distribution pipeline in Finland, from Gasum Oy, a Finnish state controlled company. The pipeline provides local gas distribution to Helsinki and 11 surrounding areas.
Key attractions:
- Strong cash generation and yield
- Core infrastructure asset with regulated return
- Safe and stable operating and regulatory environment
- Safe, stable operating environment
- Recently upgraded asset base and low capex requirement
- Growth opportunities through acquisition
Sector: utilities
Subsector: gas distribution
Geography: Finland
Ownership: 50%
Noord gas transport
Aquired September 2020 interest in NGT UJV, and May 2021 stake in NGT B.V.. The NGT system consists of a pipeline and processing system that transports and treats natural gas that is produced in the Dutch Continental Shelf, and consists of: A 140km pipeline (“NGT Extension”) constructed in 1999 A 178km ‘legacy’ pipeline (“Legacy Pipeline”) constructed in 1975 An onshore gas processing plant (“Processing Plant”) at Uithuizen, the Netherlands
Sector: energy
Location: Netherlands
Ownership: 19% / 22%
Oikos
Aquired May 2020. Owner and operator of a state-of-the-art liquid bulk storage terminal located on the River Thames Estuary offering c.300,000 m3 tank capacity and unique access to pipeline connections, deep-water jetty and road loading facilities. Oikos currently handles jet fuel and diesel, and is critical to supplying jet fuel to Heathrow, Gatwick and Stansted airports and diesel to the South East and Midlands of the UK.
Sector: energy
Location: UK
Ownership: 100%
Riihimäen Kaukolämpö
Aquired February 2019. Riihimäen Kaukolämpö Oy is the owner and operator of the district heating network in the in the City of Riihimäki and the surrounding areas. Riihimäki is a rapidly expanding “commuter city” located within 100km of Helsinki and Tampere, two of the most economically vibrant regions in Finland. The length of the network is 98.5km across the Riihimäki area and there are currently 821 clients connected to the network.
Sector: energy
Location: Finland
Ownership: 40%
Unitank STORAGE
Aquired May 2022. UNITANK is a market leading independent infrastructure and services provider storing liquid oil products on behalf of strategic storage agencies and Oil & Gas majors. The company owns and operates five terminals in Germany and one terminal in Belgium, all in key strategic locations.
Sector: energy
Location: Germany / Belgium
Ownership: 35%
LOIMUA
Aquired Juy 2021. Loimua primarily owns and operates 640MW of heat production capacity and 16 district heating networks across Central and Southern Finland. The networks cover c.500km and c.4,600 supply points. Loimua produces DH and electricity, and sells and distributes district heating and natural gas in Häme, Central Finland, Northern Ostrobothnia and Heinola.
Sector: utilities
Location: Finland
Ownership: 41.5%
Polish Solar
Aquisition began Q3 2020. 351 MW of ground-mounted solar photovoltaic farms spread between seven operational (Aurora I, II & III, Helios I & II, Eos, Ra) or being developed projects by local developers. Construction of first farms completed in mid-2019 with balance coming online by Q1 2021. Revenue underpinned by 15-year guaranteed tariff under Poland’s newly introduced contract for difference regime.
Sector: energy
Location: Poland
Ownership: 50%
Airband
Acquired in November 2020, Airband is a provider of rural connectivity services in the West of England, historically through Fixed Wireless Networks (“FWA”). Since 2018 the business has pivoted towards providing Fibre to the Premises (“FTTP”), driven by UK Government led initiatives including subsidies, to promote significant investment in fibre infrastructure for rural areas and is targeting 675,000 homes passed by 2025.
Sector: telecoms
Location: UK
Ownership: >40%
Outokummun Energia Oy
Aquired December 2022, Outokummun Energia primarily owns and operates a regulated electricity distribution network, a district heating network and a small retail business in the City of Outokumpu, in Eastern Finland. The networks cover a combined length of 1,030km and approximately 5,280 electricity distribution and 4,260 energy customers. Additionally, Outokummun Energia owns and operates 50MW of heat production.