Infrastructure

Using local market expertise to bring value to infrastructure investments across the capital structure

Our infrastructure debt strategy has invested in 75+ European infrastructure companies in 11 countries since inception

Targeting resilient, sustainable returns via a range of tailored solutions

Investing across European infrastructure, we design and implement solutions to meet client objectives.

A local approach with deep-rooted regional and sector expertise makes us a trusted partner in the markets in which we operate, helping to source deal flow and enhancing our ability to capitalise on prevailing market conditions. We target brownfield and greenfield assets in geographically mature markets, identifying areas for significant value creation.

We focus on assets which are resilient to inflation and market downturns. In addition to our infrastructure investments in mature markets, we are preparing investments in emerging markets infrastructure in partnership with BlueOrchard with a special emphasis on sustainability and impact.

Our infrastructure business was formerly known as Schroder AIDA.

Targeting opportunities with the potential for significant value creation in a changing world

We focus on providing investors with access to developing and established infrastructure opportunities across all sectors in the continental European and UK mid-market, both through infrastructure equity and debt (junior and senior). We identify and capitalise on changes in the socio-economic landscape, building on this change to drive value.

We focus on three main investment themes:

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Essential infrastructure

We invest in a broad group of core infrastructure assets, focusing on long economic life and long-term cashflow visibility

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Energy transition

We support the transition to cleaner energy via a range of initiatives across Europe, such as wind power and solar projects

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Digital transformation

We invest in assets enabling the digital revolution, from telecommunications towers to fibre-optic cable and green data centres, all of which work to make all-digital networks for the new generation possible

Building change to maximise value in our assets

By being deeply embedded in markets we know well, we can be agile, pre-empt changing trends and deploy multiple value creation levers

Sourcing expertise  – We use our extensive experience in asset analysis to be able to quickly and consistently identify assets and deploy capital to access unique, often proprietary, transactions via the team’s extensive on-the-ground relationships.

Full partnership  – We form long-term partnerships for both sourcing and managing investments. As partners, we bring value by quickly reacting to market trends and deploying varied portfolio management techniques tailored to the assets in question

Developing essential and sustainable infrastructure

We integrate sustainability across all aspects of our infrastructure investments. We identify risks at the outset of the investment process and monitor ESG progress throughout the investment life cycle through proprietary ESG and impact assessment and reporting tools. We consider a range of factors, including energy efficiency, social impact, and governmental policies, to help build change within investments and societies.

Our leadership

With strong local footprints across the globe, our investors trust us to source what we consider the most sought-after investment opportunities.

Key Investment Risks

Volatility risk: The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. 

Liquidity risk: There may be very limited liquidity available via the secondary market of the proposed Fund given the underlying private credit assets and investors should consider an investment only if they intend to hold it for the life of the proposed Fund. Liquidity of the underlying investments might not be sufficient to meet investor subscription and redemption requirements. 

Interest rate risk: A rise in interest rates generally causes bond prices to fall. 

Credit risk of underlying issuers/lenders: A decline in the financial health of an issuer/lender can cause the value of its bonds/ loans to fall or become worthless. 

Currency risk: The fund can be exposed to different currencies. Changes in foreign exchange rates could create losses. 

Counterparty risk: The counterparty to a derivative or other contractual agreement or synthetic financial product could become unable to honour its commitments to the proposed fund, potentially creating a partial or total loss for the proposed fund. 

Derivatives risk: A derivative may not perform as expected, and may create losses greater than the cost of the derivative.

Concentration risk: The proposed Fund may be concentrated in a limited number of geographical regions, industry sectors, markets and/or individual positions. This may result in large changes in the value of the fund, both up or down, which may adversely impact the performance of the fund. 

Gearing risk: The proposed fund may borrow money to invest in further investments. Gearing will increase returns if the value of the investments purchased increase in value by more than the cost of borrowing, or reduce returns if they fail to do so. 

Valuation risk: The underlying private credit assets may be subject to inadequate pricing reliability. In addition, property-based vehicles invest in real property, the value of which is generally a matter of a valuer’s opinion. 

Industry/country risk: Legislative changes, changes in general economic conditions and increased competitive forces may affect the value of investments. Additional risks may include greater social and political uncertainty and instability and natural disasters. 

Infrastructure asset risk: Infrastructure assets expose investors to additional risks, in particular construction risk (e.g. construction delays, cost overruns, etc.) and deployment risk (e.g. capital being deployed in several instalments during construction period rather than upfront for brownfield investments).

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Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. All investments involve risks including the risk of possible loss of principal.