Our infrastructure success and competitive advantage are built on six key principles.
Targeting high-quality assets
We target core infrastructure assets that typically have monopoly-like characteristics, including strong market positions, conservative leverage, predictable regulatory environments and high barriers to entry.
Managing for long-term net returns
Our infrastructure strategies target a total return outcome that comprizes capital growth and cash yield using conservative levels of leverage. We aim to assist assets to deliver capacity enhancing capital investments that meet the long-term needs of customers and the community.
Focused on value creation
Our team can facilitate large, complex transactions, as well as smaller, accretive opportunities. We are also able to position individual operating companies and platform investments to allow for bilateral transactions.
A large, dedicated investment team
Our team is able to implement appropriate governance structures and proactively work with experienced and capable management teams.
Unique proprietary portfolio construction
Our infrastructure portfolio methodology (InFRAME) analyzes the underlying revenue streams and value drivers of infrastructure assets.
An integrated responsible investment approach
We take an integrated approach to responsible investment considerations. We believe this enhances the productive capacity and net performance of our portfolio companies over the long term.
Our strategies
IFM Investors is a pioneer and leader in global infrastructure investing.
We own and manage critical infrastructure assets that generate wide-ranging social and economic benefits to communities across the world.
Target sectors
We invest in essential infrastructure assets spanning a diverse range of sectors and asset types. Characteristics that tend to underpin our investments include monopolistic positioning, long concession life, predictable revenues, inflation protection, exposure to economic growth and a stable regulatory environment.
| Sector | Transportation | Utilities | Energy | Digital | Social infrastructure |
|---|---|---|---|---|---|
| Asset types | Toll roads | Gas & Electric | Renewables | Telecommunications | Education |
| Airports | Waste & Wastewater | Gas processing | Data storage | Aged care | |
| Seaports | District heating/ cooling | Pipelines | Government | ||
| Rail | Energy storage | Public transport | |||
| Diversified |
Our investment approach
How we manage our investments in infrastructure has been shaped by decades of experience.
We take a long-term approach and choose assets that typically have strong market positions, a predictable regulatory environment, high barriers to entry, limited demand-elasticity and long lives.
Primarily, we invest in OECD countries, with a focus on North America, UK/Europe and Australia, across a range of sectors. Once acquired, we adopt a hold, manage and reinvest strategy, with opportunistic exits.
InFRAME – a unique portfolio approach
In 2011 we launched InFRAMETM, a three-phase methodology that analyzes the underlying revenue streams and value drivers of infrastructure assets.
We believe InFRAME has proven to be invaluable in our due diligence and portfolio management processes, and differentiates IFM Investors in the marketplace. It enables us to:
-
Generate a deeper, bottom-up understanding of each asset's risk and revenue profile and the influence this has on a wider investment portfolio.
-
Build quantitative insights into the way infrastructure assets, and the sub-sectors to which they belong, respond to macro-economic drivers and scenarios.
-
Create greater awareness of strategic allocation within an infrastructure portfolio, based upon the revenue characteristics of the underlying assets.
More information
For more information about our Infrastructure capabilities, please contact us online or reach out to your regional Client Solutions team.
