Why invest in unlisted infrastructure?

our approach

Get rare access to highly-sought after assets the world relies on
Infrastructure is the foundation of modern society and includes services like clean water, energy, roads, airports, ports and communications systems. By capitalizing on the growing need for private-sector infrastructure funding, this asset class offers investors the opportunity to benefit from long-term predictable income with capital appreciation. It can also provide defensive earnings streams, diversification from other asset classes and some inflation protection. As one of the world’s largest infrastructure managers, we focus on core infrastructure, providing essential services in developed economies which often have monopolistic characteristics. We target mature, brownfield assets, with long-term, transparent earnings, delivering stable cash flows and predictable returns.

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investment strategy

We actively add strategic and operational value through 100% ownership and/or board representation
As long-term investors, our investment strategy is to manage a large enough interest, in many cases 100% ownership, to enable value-added contribution through engagement with management on a variety of levels from project teams to working groups through to sub-committees and the board. This hands-on form of governance and oversight in relatively illiquid assets helps mitigate risk, enhancing potential risk-adjusted returns. Through direct and meaningful board representation and participation, the team provides strategic input on ESG issues, business strategy, operational and capital expenditure, capital structure and all other key drivers of value.

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ESG factored in

We place best-practice ESG management high on our agenda
We believe that proactive environmental, social and governance (ESG) management improves long-term investment returns. We have the distinct advantage of being able to engage directly with our portfolio companies via board representation and/or workshops with management. This direct involvement provides the opportunity to drive cultural change, to set ESG KPIs, and allows a two-way conversation between management and investors to ensure alignment on long-term value creation and protection. An ESG focus also ensures alignment with our clients' long-term interests, as well as the customers that rely upon the services being provided. Where we manage less than 100% of an infrastructure business, we engage directly with our co-investment partners to ensure they understand and support the logic for our focus on ESG issues and to also learn from their approach to this area. We target international accreditations and standards for all of our infrastructure businesses.

Find out why ESG is important for infrastructure > 

Documents

Our Assets

An overview of the assets owned by the Unlisted Infrastructure team can be found here.

Investment Team

Since 1994, we have built up a well-diversified portfolio of assets in stable jurisdictions through a combination of on-market acquisitions, capex in existing assets and bolt-ons. Our team of 35 specialists based in Australia and the UK have been selected for their knowledge of operational management, investment skills and experience within infrastructure businesses (as at January 31, 2018). We are aligned with our clients through real return benchmarks, fee structures and remuneration.

Perry Clausen
Head of Global Infrastructure Investments
Perry Clausen
Head of Global Infrastructure Investments
Marcus Ayre
Partner
Marcus Ayre
Partner
Danny Latham
Partner
Danny Latham
Partner
Chris McArthur
Partner
Chris McArthur
Partner

Responsible Investment

Responsible Investment

Our corporate RI strategy is based upon three strategic pillars of quality, stewardship and engagement.
We believe that proactive ESG management improves long-term investment returns and that adopting a responsible investment policy throughout our business is the only viable approach to the creation of sustainable long-term value. An ESG focus also ensures alignment with our clients' long-term interests, as well as the customers that rely upon the services being provided. Learn more about the Unlisted Infrastructure team's approach to Responsible Investment.

More about Responsible Investment at First State Investments >

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