Real Assets

We advise on:

- Regulated power and gas transmission and distribution networks, as well as regulated water business
- Unregulated tank storage, power and gas distribution networks, CHP (combined heat and power) and water pipelines
- Power generation (coal, gas, nuclear, large hydro)
- Alternative energy (onshore and offshore wind, solar PV, solar thermal, battery)
- Long term leased assets such as aircraft, vessels and rolling stock
- Agriculture and timber
 
Asset characteristics include:
- Global asset class exposure, but direct local asset investment
- Long life, "hard” real assets (20 years or more)
- High up front investment, with predictable ongoing operational cost profile
- Long term predictable and stable returns, based on well defined drivers
- Highly defensive / monopolistic / essential services
- Regulated / quasi-regulated or unregulated with long term contracts
- Long term performance history, with limited technology risk
- Low performance risk
- High quality counterparties (for example utility power purchases)
 
In our view we believe institutional interest in the real asset sector is driven by:
 - Preservation of invested capital
- Generation of stable, attractive returns relative to defined benchmarks
- Significant cash distribution, as a large component of returns
- Long-term inflation protection
- Uncorrelated returns versus traditional asset classes
- Diversification of asset classes
- Market leading operational partners
- High fundamental asset utilisation
- Compliance with responsible investment themes (community, labour, environmental, other)