Infrastructure
Our highly-resources global infrastructure team seeks out compelling investments across infrastructure markets - each designed to deliver attractive, stable and more predictable long-term returns.
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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.
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Opportunity
Through our infrastructure equity offering, we give our clients the opportunity to invest directly in economic 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.
Concession Infrastructure
A 20-year track record of investing and asset management, predominately in long-term government contracts and social and economic infrastructure projects.
Scale
We are part of the Aberdeen Standard Investments brand which manages more than £67 billion of assets across private markets. This makes us part of one of the largest private markets investors in the world. In total, over £3 billion of infrastructure investments is managed on behalf of investors.*
*Source Aberdeen Standard Investments. As at 30 June 2019.
Team
Established in 1998, our highly experienced team of 32 investment professionals have invested in over 120 infrastructure investments to date (May, 2019). The team is based in London, Edinburgh, Paris, Madrid, Amsterdam, Bahrain, Sydney and Bogota.
Investors
Our investor base spans both public and corporate pension funds, insurance companies and family offices across the world.
Strategy
We focus on availability-based, partially inflation-linked cash flows with little or no correlation to economic cycles. Value resides in the contract, with limited risk associated with residual asset value.
We invest in hospitals, schools, roads, rolling stock, government accommodation, social housing, and waste and water in the UK, Europe, Australia, US, the Middle East and Latin America.
Concession portfolio
Roads
The North Carolina Department of Transportation, in cooperation with the Federal Highway Administration, proposed to improve 26 miles of I-77 from I-277 by introducing High Occupancy Toll lanes.
The proposed I-77 HOT project is a conversion and expansion of the current High Occupancy Vehicle facility that will provide growing communities and congested I-77 traffic with additional capacity
Sector: Transport
Geography: North Carolina
Project Size: US $663m
Social
Paris Justice Court is a PPP contract to design, build finance, maintain and operate a new Justice Court in Paris . The new Justice Court will house 90 courtrooms and is expected to be visited by 8,500 people daily.
The Project Agreement is 32 years, including a 5 year construction period. The term of the operation period is fixed to 27 years.
Sector: Government
Geography: Paris, France
Project Size: €605m
Water Treatment
Mundaring Water Treatment Plant is the design, build, finance and operations of a new treatment plant near Perth, Western Australia. The plant will serve the Goldfields Agriculture region and will supply over 100,000 inhabitants with fresh water supply.
The project has been successfully operating since 2013 and we have recently completed the first senior debt refinancing as planned for a further 5 year tenor.
Sector: Water Treatment
Geography: Perth, Australia
Project Size: A$ 400m
Economic Infrastructure
Our economic infrastructure investment philosophy centres on our belief that infrastructure is a long-term asset class capable of delivering attractive, consistent returns to investors.
Philosophy
Our economic infrastructure investment philosophy centres on our belief that infrastructure is a long-term asset class capable of delivering attractive, consistent returns to investors. Our approach is focused on:
- developing a long-term fund structure which is aligned with investors' objectives.
- creating a portfolio of mid-market core/core+ infrastructure investments.
- recognising the importance of effective asset management and stakeholder engagement.
- clearly defining what constitutes core infrastructure within our target return range.
Investors
Our investor base spans both public and corporate pension funds, insurance companies and family offices across the world.
Strategy
We invest in operational assets with limited or no construction risk. We target infrastructure investments in Europe which are typically yielding from day one. We are attracted to the following investment characteristics:
- lower to mid-market assets in less competitive areas of the market.
- assets which provide essential services and have predictable cashflows.
- regulated assets or assets with a strong, contractual framework.
- lower risk assets that require limited operational development.
- majority stakes or minority interests where we have appropriate governance rights.
Economic portfolio
Nordic Power AS
In June 2015, we acquired 100% 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 | Subsector | Geography | Ownership |
|---|---|---|---|
| Energy | Hydro | Norway | 100% |
Rock Rail East Anglia PLC
In September 2016, we signed an agreement to acquire 48% of RREA, its second transformational funding solution in the UK rolling stock sector. The transaction comprises 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.
Key attractions:
- Core UK rolling stock asset
- Long term operating profile with no volume risk
- Blue chip transaction counterparties
- No refinancing risk
- Immediate yield to SLCI I
| Sector | Subsector | Geography | Ownership |
|---|---|---|---|
| Transport | Rolling Stock | UK | 51% controlling position |
Auris Kaasunjakelu Oy
In June 2015, we acquired 100% 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 | Subsector | Geography | Ownership |
|---|---|---|---|
| Utilities | Gas distribution | Finland | 100% |
Dominic Helmsley
Head of Economic Infrastructure
Dominic heads up the Economic Infrastructure team at Aberdeen Standard Investments. He has over 20 years’ experience in the infrastructure sector combining extensive mergers and acquisitions experience with asset management expertise. Dominic spent 12 years with BAA plc where he headed their international acquisitions group and oversaw the acquisition and management of a number of overseas investments. Dominic then spent eight years in the fund management industry, initially with Babcock and Brown, as part of the European Infrastructure team that raised a €2.2bn infrastructure fund, and then as a Partner with Arcus Infrastructure Partners, which completed an MBO from Babcock and Brown in 2009.
Gershon Cohen
Global Head of Infrastructure Funds
Gershon Cohen is Global Head of Infrastructure Funds, Aberdeen Standard Investments. Gershon’s platform has USD$3bn of institutional capital under management and consists of 7 unlisted funds and associated investment vehicles invested in over 120 greenfield and brownfield infrastructure projects. He is responsible for the management, leadership and development of the concessions infrastructure strategy for Aberdeen Standard Investments and is a fund principal and chair of investment and associated committees of the platform. The platform operates from offices in London, Edinburgh, Paris, Madrid, Amsterdam, Sydney, Bogota and Bahrain with a team of 32 professional investors and other joint venture partners.
Previously Gershon held the position of CEO SWIP Infrastructure Funds & CEO Lloyds Bank Project Finance Equity and Funds, which involved the origination, investment and management of all infrastructure equity products across the UK, Europe, Australia and Americas. Prior to this, Gershon was Global Head of Lloyds Bank Project Finance. Gershon has played a pivotal role in structuring, arranging and providing innovative funding solutions to a range of ground-breaking PFI/PPP/P3 projects in healthcare, transport, wastewater and education over the last 20 years. Gershon led the fundraising efforts for the current platform. He sits and advises on many trade and governmental committees on infrastructure investment matters; has presented at numerous conferences and seminars; and has written a number of articles on PPP/P3.
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Dominic Helmsley
Head of Economic Infrastructure
Dominic heads up the Economic Infrastructure team at Aberdeen Standard Investments. He has over 20 years’ experience in the infrastructure sector combining extensive mergers and acquisitions experience with asset management expertise. Dominic spent 12 years with BAA plc where he headed their international acquisitions group and oversaw the acquisition and management of a number of overseas investments. Dominic then spent eight years in the fund management industry, initially with Babcock and Brown, as part of the European Infrastructure team that raised a €2.2bn infrastructure fund, and then as a Partner with Arcus Infrastructure Partners, which completed an MBO from Babcock and Brown in 2009.
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Gershon Cohen
Global Head of Infrastructure Funds
Gershon Cohen is Global Head of Infrastructure Funds, Aberdeen Standard Investments. Gershon’s platform has USD$3bn of institutional capital under management and consists of 7 unlisted funds and associated investment vehicles invested in over 120 greenfield and brownfield infrastructure projects. He is responsible for the management, leadership and development of the concessions infrastructure strategy for Aberdeen Standard Investments and is a fund principal and chair of investment and associated committees of the platform. The platform operates from offices in London, Edinburgh, Paris, Madrid, Amsterdam, Sydney, Bogota and Bahrain with a team of 32 professional investors and other joint venture partners.
Previously Gershon held the position of CEO SWIP Infrastructure Funds & CEO Lloyds Bank Project Finance Equity and Funds, which involved the origination, investment and management of all infrastructure equity products across the UK, Europe, Australia and Americas. Prior to this, Gershon was Global Head of Lloyds Bank Project Finance. Gershon has played a pivotal role in structuring, arranging and providing innovative funding solutions to a range of ground-breaking PFI/PPP/P3 projects in healthcare, transport, wastewater and education over the last 20 years. Gershon led the fundraising efforts for the current platform. He sits and advises on many trade and governmental committees on infrastructure investment matters; has presented at numerous conferences and seminars; and has written a number of articles on PPP/P3.