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Investing in Infra­structure

Why invest in Infra­structure?

Infra­structure as an asset class has enjoyed an extra­or­di­narily exciting devel­opment with signif­icant growth over the past decades. Its long-term attrac­tiveness is reflected in the fact that it is now estab­lished as an asset class among insti­tu­tional investors and continues to expe­rience an increase in port­folio allo­cation. Infra­structure invest­ments offer long-term income compo­nents, inflation protection, a low corre­lation with other asset classes and a high degree of compliance with ESG criteria.

The topics of decar­bon­i­sation, digi­tal­i­sation, demo­graphic change and decen­tral­i­sation are becoming increas­ingly important across all core segments, whether in energy supply, transport or telecom­mu­ni­ca­tions infra­structure. The variety of attractive investment oppor­tu­nities has risen signif­i­cantly due to market growth (capital require­ments and number of projects) and new areas of investment. This trend will continue in view of the immense investment and pent-up demand worldwide and the social and political rele­vance. Conse­quently, the avail­ability of private capital will continue to grow in impor­tance in the future.

YIELCO Infra­structure is active across the entire investment spectrum from core to oppor­tunistic investment strategies and provides its investors with (indi­vidual) access to inter­esting oppor­tu­nities on a global basis across the asset class spectrum via fund of funds programmes, secondary market oppor­tu­nities and co-invest­­ments.

Fund of funds

YIELCO’s Infra­structure fund of funds offering covers a programme series that pursues global invest­ments with a focus on Europe and the USA, supple­mented by other OECD coun­tries. The investment focus lies on fund managers who implement “Core+” or “Value Add” strategies in the small- and mid-market. Invest­ments in existing infra­structure assets (“brown­field”) form the main focus of the port­folios. The indi­vidual programmes typi­cally comprise of around 12–15 fund invest­ments (primaries and secon­daries) by different managers, which are invested over several years to reduce risk, resulting in broad diver­si­fi­cation across more than 150 infra­structure invest­ments.

  • YIELCO Infra­struktur I, 2014
  • YIELCO Infra­struktur II, 2017
  • YIELCO Infra­struktur III, 2021
  • YIELCO Metzler AM Infra­struktur IV, 2024

Co-invest­ments

YIELCO’s Infra­structure co-investment offering comprises of a series of programmes whose strategy builds on YIELCO’s long-standing infra­structure investment strategy. Geograph­i­cally, the focus is on invest­ments in Europe and North America. Core+ and value-add oppor­tu­nities in the small and mid-market are the investment focus, whereby the port­folio should have an asym­metric risk-return profile. Infra­structure co-invest­­ments are selected that have the typical infra­structure downside protection (risk hedging), but at the same time offer attractive potential returns through active value enhancement measures. The port­folio structure typi­cally consists of around 12–15 co-invest­­ments alongside expe­ri­enced infra­structure managers.

  • YIELCO Infra­structure Oppor­tu­nities, 2024

Customised mandates

YIELCO’s Infra­structure offering comprises of the indi­vidual, customised devel­opment and expansion of an infra­structure port­folio across the entire strategy spectrum. The investment focus is generally on core+ strategies, whereby all size segments can be covered (small to large and mega funds/transactions) and client-specific port­folio orien­ta­tions are taken into account. Investment oppor­tu­nities include primaries, secon­daries and co-invest­­ments.

  • There is no guar­antee that certain return or income targets will actually be achieved or that a positive return or income will be realised at all. The investment may result in a financial loss. Historical perfor­mance is not a reliable indi­cator of future perfor­mance.
  • There is no guar­antee that the funds will find a suffi­cient number of suitable investment prop­erties (blind pool risk). The target funds/investments and financing are only tradable to a limited extent and are very illiquid. The realised value may be lower than the true value of the investment.
  • Equity and equity-like instru­ments are generally subor­di­nated to debt cred­itors and other cred­itors and holders of senior capital instru­ments. Due to the type of investment, they can be subject to high risks, including total loss.
  • It cannot be ruled out that changes in legis­lation may worsen the compen­sation basis or other regu­latory condi­tions, even for existing projects.