This private debt asset class finances the development and maintenance of essential services and structures in the public and private sector.
With a wide range of sectors to explore, the asset class offers both traditional, stable, investment grade opportunities, as well as shorter-dated, sub-investment grade and higher-yielding opportunities.
Infrastructure debt has the potential to offer long-dated, stable, cashflow-driven returns. It typically has a low correlation with market movements and economic cycles. Extremely flexible in nature, the debt can be issued on a fixed rate, floating rate or inflation-linked basis.
The debt is repaid, together with interest, from cashflows on these assets. This is typically generated through earnings from rental or usage of the operating asset, ranging from hospitals and bridges to offshore windfarms.