Stable and Persistent Opportunity
Infrastructure debt is a proven asset class with a long track record. Infrastructure debt can enhance portfolio resilience and diversification relative to other credit strategies. These investments share a core set of characteristics.
Return premium relative to comparable listed bonds, derived from illiquid and sometimes complex assets that require specialised origination and structuring
Infrastructure has the lowest default rate relative to all other project finance asset classes
Declining default risk over time
Higher recovery rates than corporate bonds in part because of the structural mitigants and diligence by experienced lenders
Debt benefits from security over assets
Essential assets with stable, contracted cash flows and high barriers to entry
Infrastructure investments provide the opportunity to invest outside of the public market
Can provide access to risk factors, such as wind resource and inflation rates, that can offer diversification within a credit portfolio
Infrastructure debt is one of very few asset classes that can provide a natural match for long dated liabilities (long asset life is a natural match for long-dated liabilities)
Investments can provide long term cash flow certainty in a low yield environment
Vantage Infrastructure utilises a disciplined approach to sourcing, evaluating, executing and managing its debt investments. Our strategy has 5 pillars.
All figures as of 30 September 2021.
Photo source: Beatrice wind farm.