Investing in Infrastructure
Since the establishment of a dedicated infrastructure team in 2007, we have gradually increased our portfolio to 21 investments. Our portfolio is well diversified across several sectors.
Given our very long-term investment horizon we seek returns for Allianz and additional institutional clients through cash yield and not through exits. As a long-term, buy-and-hold investor, we focus on investments that provide stable, preferably inflation-linked, cash flows over the long term. We invest in assets that provide essential services to the public and are supported by regulated or contracted revenues or a strong market position. While we primarily focus on brownfield assets with an operational track record, we also regularly invest in greenfield projects especially in the areas of energy transition, sustainable investments and digitization. We take construction risk under appropriate contractual or regulatory protection and development risk on a selective basis.
As part of a leading international insurance company, we pursue investment opportunities globally, focusing on countries with a well-established fiscal and regulatory track record. Our focus lies on developed countries, but we are selectively also considering emerging markets.
We seek significant minority or joint control equity stakes and typically partner with like-minded, reputable investors to jointly acquire controlling equity stakes of up to 100%. We look for strong financial and industrial partners as well as a clear alignment of interest between the partners. Furthermore, we are an active investor, focusing on professional oversight but without involvement in the day-to-day management of the businesses we acquire.
“We invest in projects and businesses that deliver attractive long-term cash yields with limited down-side risk for our investors.”
Formed over several years, the investment team benefits from a diverse skill-set and cultural background coupled with long-term investment experience. The team is based in London, Luxembourg and Munich. It works seamlessly together on transactions across the globe and is supported by a network of dedicated senior advisors and the global Allianz network. The entire team has a strong network consisting of industrial companies, politics, regulators and other infrastructure investors.
“Our direct infrastructure portfolio is broadly diversified by country, sector and maturity of business and thus provides an attractive combination of income and capital growth for our investors and a robust platform to build on over the coming years.”