Infranode’s first investment platform (Infranode I) is based in Sweden and tailored around the needs of Nordic institutional investors seeking diversification, cash yield, stable returns and active inflation protection.
The long-term equity and debt investment strategies are focused on minority investments in operating assets (brown field) jointly with public sector entities, utilities, construction companies, infrastructure investors, lenders and other infrastructure stakeholders. In the Nordics, the primary strategy extends to greenfield projects as well as majority and full ownership positions. Infranode targets the mid-cap and small-cap sectors where a lack of dedicated infrastructure investors has been identified.
Infranode’s team possesses both debt financing and equity investment skills, securing that a strategy aimed at investments in assets with strong cash flow generating capabilities and a low risk profile can be executed in full.
Infranode has successfully closed its first investment commitments of SEK 1.45bn that is ready to be invested. Infranode’s pro-active co-investment strategy substantially increases its total investment capabilities.
An increasing number of institutional investors are considering infrastructure as an attractive investment because these assets can deliver diversification, stable returns, low correlation with traditional asset classes and an inflation hedge. Infranode’s view is that not all types of infrastructure assets can achieve these deliverables.
As infrastructure is still a maturing asset class, precious lessons must be learnt from certain transactions’ underperformance that were due to, among other things, too wide of a definition of infrastructure (non-core, non-essential, hybrid infrastructure), overpriced and overleveraged assets and assets where the political risk was underestimated. Infranode’s investment philosophy will focus on identifying assets that benefit from key intrinsic and contractual features that together make an infrastructure asset essential. Only the combination of these features coupled with a pro-active allocation strategy and active management can achieve the above deliverables.
Investment Philosophy Overview
In addition to investment management services, Infranode offers infrastructure investment advisory services to institutional investors seeking ad-hoc solutions to infrastructure investing. Our services range from the creation of tailored investment vehicles for individual investors to analysis and execution of investment opportunities on a case-by-case basis.