The annual LP/GP conference again took place on 3 October 2013 bringing together a series of infrastructure investors and fund managers. Glennmont acted as one of the main sponsors of the event. www.lpgpforum.com/infrastructure/agenda.html
Speakers confirmed the continued appetite by investors for infrastructure. It was noted that the sector is now offering a more broad opportunity set. Whilst the expectation is that more money will be allocated to infrastructure, it is difficult for “me too” fund managers without an edge to raise capital. Fund managers displaying alignment, a focused strategy and deep pipeline offering transparency are preferred. Also, funds with strong investment discipline, governance and a solid track record are favoured.
Renewable energy is a clear theme within infrastructure and with the correct investment strategy, can offer strong cash yield.
Panellist also discussed debt financing, noting that there is a wider source of debt capital available beyond just traditional project finance. Increasingly, institutional investors are interested in providing long term debt, sometimes going directly into investments and in other cases working alongside a bank.