13.04.2023 | News

Golding continues successful infrastructure co-investment strategy with third-generation fund

Exclusive, diversified investments alongside experienced GPs with active asset management competence // International deal flow from broad Golding network remains strong, especially in market segments driven by megatrends // Golding’s track record is testimony to its quality and long-standing co-investment expertise

The launch of the Golding Infrastructure Co-Investment 2023 fund marks the third generation of a successful co-investment strategy, offering institutional investors direct access to infrastructure assets with selected, experienced fund managers. The investment strategy is to commit the planned fund volume of €600 million to Core Plus assets, with part of the total also allocated to value-added opportunities. As with the previous fund, the geographic focus will be at least 50 per cent on Europe, with possible allocations of up to 40 per cent for North America and up to 20 per cent for other markets. Golding works exclusively with experienced fund management partners that practise an active asset management strategy. Thanks to its wide range of existing relationships with successful fund managers, Golding has excellent sources of high-quality deal flow and has invested approximately €1 billion in co-investments to date. 

The fund strategy will be to quickly build a portfolio of some 15 co-investments in market segments set to profit from the structural global megatrends mobility, digitisation, decarbonisation and demography. The fund will therefore follow the tried and tested approach of its two predecessors, of which the latter was significantly oversubscribed when it held its final closing at €578 million in June 2022.

“Our LPs have clearly indicated their substantial interest in a continuation of our co-investment fund strategy. There is a strong ongoing pipeline of potential deals, and it is no secret that enormous amounts of capital still have to be invested going forward in long-term infrastructure assets in the areas we have identified, including in digitisation and decarbonisation”, explains Dr Thilo Tecklenburg, Partner and Co-Head of Infrastructure at Golding.

Focus on diversification and active asset management

“It is not only the fund managers; we also carry out our own independent due diligence on every single opportunity. That also includes multidimensional diversification by sector, region and manager, and of course the consistent application of our demanding ESG criteria. This investment strategy is an element of the portfolio’s multidimensional diversification. As well as this highly selective approach in the investment phase, we place great importance on active asset management during the holding phase”, adds Bernd Schumacher, Managing Director and Co-Head of Infrastructure at Golding.

Stable cash flows and inflation hedge 
“With this continuation of our infrastructure co-investment strategy we offer experienced institutional investors the opportunity to make long-term investments in assets with stable cash flow structures, which provide solid protection against inflation. Our team of specialists and the international network they have built up over many years ensure that we have excellent market access”, notes Hubertus Theile-Ochel, Managing Partner at Golding.

Golding Infrastructure Co-Investment 2023 is structured as a Luxembourg RAIF and qualifies as “light-green”, i.e. it meets the requirements of Article 8 SFDR. The fund has a planned life of 15 years plus one optional extension. It aims to generate a net IRR of 10 to 11 per cent. The minimum commitment is €10 million.