Infrastructure

Infrastructures such as motorways, hospitals, water distribution networks and renewable energies provide people with essential services for their well-being and development. The financial stakes involved in providing these infrastructures is nowadays very high for the government and local authorities and they are now increasingly open to private investment. Being stable assets - generally at low risk - such infrastructures offer long-term visibility for their financial returns.

AXA Group launched its infrastructure business in 2005. This business then affiliated to AXA Equity in 2007. It invests in the equity of private companies in charge of infrastructure development and management - along with industrial and financial partners – to which they contribute their technical expertise or financial resources.

Since 2005, the Infrastructure team invested over €400 million in five transactions in France, the United Kingdom and Italy, in the transport, energy, water distribution and waste treatment sectors.

Approach:

• Investment in companies whose activity generates stable and foreseeable cash-flows
• Upstream work with our industrial and financial investment partners on defining a long-term business plan
• Analyses risks and makes in-depth due diligence on assets
• Optimisation of the financial structure
• Rigorous follow-up in carrying out the business plan

Criteria:

• Long-term investment horizon (10 to 20 years)
• Investment in mature companies or in projects being developed
• Real profits (assets correlated positively to inflation)
• Sectors: transport, environment, energy, public-private partnerships
• Capacity to invest up to 150 million per transaction
• Corporate governance
• Business plan
• Country: EU and other European countries