Our Infrastructure team invests in companies with stable underlying performance: asset-intensive businesses, providing essential services over the long term, often on a regulated basis, or with significant contracted revenues.
Infrastructure businesses generally have a strong market position, often operating within regulated markets, or with revenues underpinned by strong, long-term contracts.
They can be described as “essential”, either because they are fundamental to economic activity and economic growth, such as utilities or transport infrastructure, or because they support important social functions, such as education or healthcare facilities.
Key features include:
- Some degree of inflation linkage
- Low volatility through economic cycles
- Predictable, income-oriented returns when operational
- Potential for capital growth
- Low correlation to other asset classes
The quality and predictability of cash flows tend to result in attractive distributions to shareholders.
The infrastructure asset class offers the opportunity to invest in many types of assets with different risk/return characteristics, as shown in the graphic below.
We focus our investment activity in the core infrastructure and primary PPP and renewable energy project markets through the vehicles we advise or manage.
3i’s Infrastructure investment team focuses principally on the Utilities, Transportation and Social Infrastructure sectors.