Why infrastructure debt?
For many investors, infrastructure debt strategies can act as a strong diversifier within a broader private credit or real assets allocation and strengthen portfolio performance by virtue of relatively lower defaults and yield premiums to alternative forms of credit.
We manage capital that has the flexibility to invest across the credit spectrum and capital stack, on a global basis.
Through our global network of infrastructure debt specialists, our philosophy is to focus on net returns with the aim of achieving attractive relative value, given our view of the global opportunity set.
Lending to assets that deliver essential services
We invest in opportunities across both investment and sub-investment grade markets through both senior and junior positions.
Focused on lending to assets that provide essential services to businesses and individuals, we target long-term visibility on earnings and cashflow. We also seek to originate investments with resilient financing structures, with appropriate levels of leverage, covenants, and strong recovery prospects stemming from long-life tangible assets.
In focus – US Infrastructure Debt
We invest in infrastructure assets primarily located in and/or domiciled in US dollars, with the aim of delivering a sustained risk adjusted premium over US corporate credit.
Key features of this approach include:
Focus on senior, floating-rate loans to U.S. infrastructure projects at the operating level, secured by a 1st lien on project assets, and with a significant ‘equity-cushion’ beneath our loan.
Opportunistic exposure to non-senior secured, or assets from other OECD countries demonstrating attractive relative value.
Broad sector strategy to provide a wide opportunity set, the ability to capture shifting relative value, and greater portfolio diversification (e.g., midstream, energy transition, power, transportation, utilities, social, digital)
Credit quality generally BB+ to B.