Stable cash flows from durable physical assets
In many countries the private sector has in recent years played an increasing role in the construction and operation of infrastructure. Today there is a wide selection of vehicles and instruments available for investing in infrastructure. They range from investments in social infrastructure, such as schools and roads, via utilities and energy infrastructure through to investments in airports and container shipping ports. All investments in this asset class have a common goal: to generate attractive returns with stable, long-term current income.
Attractive distributions over the lifetime of the investment
Infrastructure investments 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.
At a glance: why infrastructure?
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.