Economic Infrastructure
We are part of the Aberdeen Standard Investments brand which manages more than €19 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.
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 portofolio 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.
Team
We have 11 investment professionals dedicated to our core/core+ strategy across investment offices in London and Edinburgh. The team is supported by the marketing, legal, finance and operational functions of Aberdeen Standard Investments.
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.
Our investment capabilities
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% |