Golding Capital Partners held the final close of its investment programme Golding Infrastructure 2018 on 31 March 2020, with capital commitments of €710 million. This reinforces the Munich-based manager’s position as one of the leading providers of infrastructure investments in Europe and brings its assets under management in this asset class to over €3.8 billion. Further infrastructure investment vehicles for institutional investors are planned to be launched in the summer.
Golding Infrastructure 2018 is the third-generation fund in an investment strategy developed in 2012 and proven over the two previous funds. It provides institutional investors access to a broadly diversified portfolio of some 200 infrastructure projects in Europe and North America, covering system-relevant sectors such as energy, telecommunications, utilities, transport and social infrastructure. The focus of the conservatively structured portfolio will be on core and core-plus investments to generate current income, combined with promising value-added projects. Investments in 15 primary and secondary funds are planned overall, along with an allocation for selected co-investments.
Dr. Matthias Reicherter, Managing Partner and Chief Investment Officer at Golding: “Our long-standing relationships and substantial commitment volumes make us an important partner in this highly competitive environment, also for fund managers experiencing strong demand. This enables us to generate significant added value for our investors. For the current programme we have already committed to eight high calibre target funds.”
Nearly 70 investors have subscribed to the fund, including banks, insurance companies and pension funds from German-speaking and other European countries. In addition to strong renewed demand from existing investors, of whom some 70 per cent are returning, the investment strategy also convinced many new investors. Hubertus Theile-Ochel, Managing Partner at Golding: “We are delighted by the strong interest and this ongoing expression of trust from our investors. We have maintained our conservative strategy and now have high-performing, income-generating portfolios. Against the backdrop of the challenging situation caused by the covid-19 pandemic and the economic slowdown, that is something our investors greatly appreciate.”
Further infrastructure programmes are planned to be launched in the summer. In addition to a follow-on fund in the successful fund-of-funds strategy, the launch of the second infrastructure investment programme in the attractive co-investment segment is planned.
Infrastructure – an important component of every institutional portfolio
Modern infrastructure is a key condition for long-term economic growth and a prosperous society. There is a growing need worldwide for investment in this area. This applies to both classic industrialised economies in North America and Europe as well as emerging markets in Asia, Africa and Latin America. Combined with rising global demand for capital investment opportunities, this creates attractive, long-term market conditions. Founder and Managing Partner, Jeremy Golding, emphasises: “Infrastructure investments are an indispensable part of institutional investors’ portfolios in this complex market environment. Since they are largely uncorrelated with traditional asset classes they are less sensitive to the economic cycle, and enable the portfolio to generate stable income. Our experienced infrastructure team has the necessary expertise and strong market access to make attractive investments for our investors, even in these challenging times.”
Golding has successfully invested in around 50 primary, secondary and co-investments since launching its infrastructure business in 2011. In the infrastructure segment Golding now manages over €3.8 billion for institutional investors, including insurance companies, pension funds, charitable foundations, family offices, savings banks and cooperative banks. This capital is currently spread across ten investment programmes (including fund-of-funds, co-investment funds and managed accounts).