Our approach to investment is governed by four key asset characteristics which are considered with every asset purchase:
- Category of infrastructure: We select infrastructure businesses with assets that are vital to economic activity and development; such portfolio companies provide more stable and sustainable long-term returns.
- Asset life-cycle: We invest predominantly in infrastructure businesses with brownfield assets that have a proven need and future usage expectations. We actively look for infrastructure businesses with high quality ESG (environmental, social, governance) performance in their core operations.
- Geography: We invest in infrastructure businesses located in stable, developed economies, which tend to offer more robust regulatory and institutional safeguards.
- Market competition: Our portfolio companies are by nature subject to little, or, in some cases no, competition within their markets. We prioritise infrastructure businesses with excellent customer service and strong governance.
Prior to an investment being made in an infrastructure business, the team looks to evaluate all relevant issues. No checklist can appropriately cover all the possible issues, so evaluations are made on a case by case basis. Risk assessment tools as well as country-leading expert advisors are used to help in this analysis. These tools also provide opportunities for benchmarking against similar assets and enable us to identify the early priorities post-acquisition, ensuring that no time is lost when we acquire a new infrastructure business.