FOR PROFESSIONAL INVESTORS ONLY

Columbia Threadneedle European Sustainable Infrastructure Strategy

Europe offers a compelling infrastructure investment landscape with a diverse, well established and supportive legislative environment for private investment. Yet investment needs far outweigh private capital flows. This presents an attractive opportunity for investors to generate stable, inflation-protected yields from high-quality ‘best-of-class’ infrastructure assets.

At Columbia Threadneedle, we have substantial experience in managing real assets via our UK and US real estate businesses. Our infrastructure strategy complements our offering and leverages our collaborative approach across our global investment research.

When investing in infrastructure, we believe it is important to take a long-term view, to build projects that are sustainable and ecologically responsible, and to be prepared to continually make improvements. An open-ended/evergreen structure that allows for dynamic portfolio construction and the flexible deployment of capital is therefore key.

Sustainability is particularly close to our hearts. By investing in well-governed companies that are better positioned to manage the financial and non-financial risks and challenges inherent in business, we can capture opportunities that deliver measurable positive outcomes and better financial performance.

Objective

The strategy aims to deliver consistent total returns comprising recurrent inflation-linked yield and medium to long-term capital growth, across economic cycles, by constructing a diversified portfolio of European, unlisted infrastructure equity investments.

PDF

Fund profile

Sources of added value

  1. An open-ended/evergreen strategy dedicated to investing in European, core mid-market infrastructure equities:The perpetual investment period enables us to acquire and actively manage infrastructure assets over the long term, driving value and unlocking growth potential by investing and adapting in a changing environment. We see significant opportunity in the European mid-market space (under €300million), with a diversified deal flow resulting in less competitive pressures for assets across all infrastructure sectors.
  2. Proprietary investment and dynamic portfolio construction approach: We have developed a framework (the ‘OMS’) which integrates Columbia Threadneedle’s infrastructure expertise with its global research and specialist Responsible Investment capabilities. Our origination strategy is based on the principle that each investment needs to be additive to the portfolio from a risk and return, as well as from a sustainability perspective. This allows us to build a balanced, robust portfolio with controlled volatility through economic cycles and a critical focus on long-term growth.
  3. Sustainability: It is integrated at all stages of the investment process. We analyse a prospective asset’s compatibility with the strategy’s objectives and values and create an outcome-focused sustainability plan, which is integrated in the long-term business plan and reflected in the acquisition price. Post-acquisition, we engage actively with all stakeholders to ensure alignment and delivery of sustainable outcomes.

The ‘OMS’ investment and portfolio construction framework

Key Facts

Strategy structure
Open-ended*
Performance target1
Net IRR of 8-10% p.a.
Net yield of 5-6% p.a.
Target investment universe
High-quality and sustainable infrastructure assets in Europe (primarily in European OECD countries) with a focus on utilities, transportation, social infrastructure, renewable energy and telecommunications.
1 Please note that the performance targets may not be attained.

* Providing liquidity via redemption mechanism.

Insights

14 January 2021

Ingrid Edmund

Senior Portfolio Manager

European sustainable infrastructure - in a sweet spot

There are four issues that affected infrastructure in 2020, and they reaffirm our confidence in the team’s long-term investment thesis and strategy.
Read time - 6 min
20 October 2020

Sustainable Infrastructure - A sustainable perspective on digital infrastructure

Infrastructure investors have a long track record as owners of telecommunications assets. However, 2020 is the year in which digital infrastructure has clearly established its place as a core infrastructure sector, which also provides a huge opportunity for investment in sustainability
Read time - 15 min

Infrastructure Investments Team

Heiko Schupp
Global Head Of Infrastructure Investments
Antonio Botija
Head Of Origination & Investments
Ash Kelso
Head Of Asset Management
Ingrid Edmund
Senior Portfolio Manager
Iain Richards
Head Of Responsible Investment
Ben Kelly
Senior Thematic Analyst

For Professional Investors only.
The Columbia Threadneedle European Sustainable Infrastructure Fund (the “Fund”) is not subject to the regulatory oversight of the Commission de Surveillance du Secteur Financier (the “CSSF”), the Luxembourg supervisory authority of the financial sector.
The Fund consists of at least the following vehicles: (i) Columbia Threadneedle ESIF Master Vehicle SCSp, a Luxembourg special limited partnership (société en commandite spéciale) (the “Master Fund”); and (ii) Columbia Threadneedle ESIF Feeder Vehicle 1 SICAV-RAIF S.C.A., a Luxembourg partnership limited by shares (société en commandite par actions) organised as an investment company with variable capital (“Feeder 1”) and, to the extent required in order to meet any legal, tax, regulatory and/or other requirements of Prospective Investors, certain additional feeder funds, each of which established to date has been established as a Luxembourg special limited partnership (société en commandite spéciale), including but not limited to Columbia Threadneedle ESIF Feeder Vehicle 2 SCSp (“Feeder 2”) and Columbia Threadneedle ESIF Feeder Vehicle 3 SCSp (“Feeder 3”).
Only shares in the Columbia Threadneedle ESIF Feeder Vehicle 1 SICAV-RAIF S.C.A. (“Feeder 1”) (“Interests”) are being marketed to Prospective Investors.
This Fund is an alternative investment fund for the purpose of the European Union Alternative Investment Fund Managers Directive (Directive 2011/61/EU) (the “AIFMD”). Threadneedle Management Luxembourg S.A is the Alternative Investment Fund Manager (“AIFM”) of the Fund.
In the European Economic Area (EEA): the Fund may only be marketed to prospective investors which are domiciled or have a registered office in the jurisdictions in respect of which AIFMD marketing rights have been exercised by the AIFM under Article 31 or Article 32 of AIFMD and in such cases only to persons which are Professional Investors. This document is not intended for, should not be relied on by and should not be construed as an offer to any other person.
This webpage is not investment, legal, tax, or accounting advice. Investors should consult with their own professional advisors for advice on any investment, legal, tax, or accounting issues relating an investment with Columbia Threadneedle Investments.
The analysis included in this webpage has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed.
Issued by Threadneedle Management Luxembourg S.A. Registered with the Registre de Commerce et des Sociétés (Luxembourg), Registered No. B 110242, 44, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg.
Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

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