Infastructure
Apex Trust Funds is an Assets Management firm, with a transatlantic focus on mid market infrastructure with a differentiated approach to deal sourcing.
Our economic infrastructure investment philosophy centres on our belief that infrastructure is a long-term asset class capable of delivering attractive, consistent returns to investors. Our approach is focused on:
- Developing a long-term fund structure which is aligned with investors' objectives
- Creating a portfolio of mid-market core/core+ infrastructure investments
- Recognising the importance of effective asset management and stakeholder engagement
- Clearly defining what constitutes core infrastructure within our target return range.
Infrastructure deals are typically large, longer term (often exceeding 30 years) and often involve third party debt. These characteristics often trigger more complex administration requirements, like obligatory audits, IFRS reporting and multi-jurisdictional consolidated financial results.
- Operate on a largely uncorrelated cycle to other asset classes
- Diversify even the most mature portfolio
Low volatility; limited correlation with other asset classes
- Predictable long-term cash flows; typically with medium to long term contracts
- Stable, inflation linked revenues
- Low market risk
Sustainable long-term, inflation-linked cash-flows
- Capital intensive assets which limit the number of natural competitors
- Strong operational experience needed to successfully manage assets
High barriers to entry
- Relatively low on-going variable operational and maintenance expenses
High operating margins
- Foundation for basic, irreplaceable public services, sometimes regulated
- Benefit from relatively inelastic demand
Provision of essential services
- Provide the scope for Apex Trust Funds der-isking of cash flows over hold period
Opportunity for de-risking
Asset managers are constantly trying to simplify their operating model and rationalise costs. Having a global service provider to take care of vital administrative tasks on a global scale can not only improve efficiency but also increase compliance, transparency, flexibility and lets you focus on your core activity.
Innovative Insurance Solution
Apex Trust Funds specialist infrastructure team work with four of the top 10 global infrastructure managers and can offer bespoke, multi-jurisdictional solutions unlike any other
Strategy
We invest in operational assets with limited or no construction risk. We target infrastructure investments in Europe and North America which are typically yielding from day one. We are attracted to the following investment characteristics:
- lower to mid-market assets in less competitive areas of the market
- assets which provide essential services and have predictable cashflows
- regulated assets or assets with a strong, contractual framework
- lower risk assets that require limited operational development
- majority stakes or minority interests where we have appropriate governance rights.