All infrastructure investments have a common goal: to generate attractive returns with stable, long-term current income. They are notable for their long lifespan and stable demand. This results in stable cash flows, mostly with a contractual and sometimes with a state guarantee, low volatility, and ultimately in regular distributions to investors. Together with capital appreciation by means of active facility management, this adds up to an attractive overall return. Careful, targeted portfolio construction will ensure broad diversification by geography and sector and optimise the risk-return profile. This makes it possible to exploit the opportunities offered by different infrastructure markets, particularly in Europe and North America, without foregoing stable income.
1. Stable current income
Robust demand and contractually guaranteed or regulated payments provide regular income streams.
2. Low correlation with other asset classes
Low correlation with traditional asset classes provides positive diversification.
3. Protection against inflation
Income streams are often index-linked, which offers a measure of protection against inflation.
4. Long-term growth prospects
Increasing global demand for infrastructure ensures attractive long-term market conditions..
With our specialised funds Golding Capital Partners offers institutional investors efficient access to the infrastructure asset class, particularly in Europe and North America. We attach great importance to building a broadly diversified portfolio, which makes optimal use of the opportunities offered by infrastructure investments and achieves an attractive, stable level of distributions to our investors as quickly as possible. When analysing and selecting our target funds we draw on our team's many years of experience in direct investing, which allows us to examine the investment opportunities at the level of individual transactions and discuss them on an equal footing with the fund managers. This is how we ensure high investment quality and at the same time gain access to major "leading funds", "hidden champions" – smaller, specialised managers – and attractive secondary market opportunities.
- It cannot be guaranteed that any particular return or income targets are met. Past returns and forecasts are no guarantee for future success.
- Minority shareholders that are not involved in the management of a infrastructure fund have no or only limited means of exerting an influence over the fund manager.
- At the level of the infrastructure funds it is often permitted and common to use not insignificant levels of debt, known as leverage. Although the use of leverage can improve the returns, it also increases the potential for losses.
- The market values of the infrastructure funds may be subject to considerable volatility as a result of macroeconomic factors and/or other market conditions.
- Investments in infrastructure may also give rise to additional costs, particularly in connection with government concessions and licences, as well as construction errors and defects.
- Infrastructure funds are generally not regulated investment vehicles and only offer limited protection to investors.
- Investors bear the tax and regulatory risks associated with infrastructure funds and the investments they make.
- If the risks materialise, investors in infrastructure funds may incur losses up to the total loss of their invested capital.
Detailed comments on the risks of the investment programme can be found in the respective issue document.