Infrastructure debt strategy
Infrastructure debt has shown to be resilient across economic cycles, typically offering investors a rich pipeline of opportunities aligned to their individual risk/return objectives, as well as an increasing focus on supporting the transition to a sustainable economy. Long-term structural trends, such as the energy transition and digitalisation, should continue to act as strong tailwinds for the asset class.
Strategy features
Attractive risk/return profile
Infrastructure debt can offer attractive risk-adjusted returns at core infrastructure equity-like levels, as well as protective characteristics including predictable cashflows, high barriers to entry and low volatility.
Multi-channel sourcing
The award-winning investment team1 makes use of its own extensive sourcing network, the proven multi-channel origination capability of different BNP Paribas entities, and the Group’s close relationships with more than 200 General Partners (GP).2
Environmental focus
The strategy complies with our global ESG3 standards and policies and invests in senior and junior infrastructure debt across Europe, with a strong focus on low-carbon energy, green mobility, and digital infrastructure projects.
Investment philosophy
The team’s approach to infrastructure debt investing is guided by four key principles: (1) extensive sourcing is essential for effective relative value analysis; (2) optimal opportunity selection is key to driving returns; (3) a robust investment process is fundamental to alpha generation; and (4) applying a sustainable approach.
Investment process
The strategy follows a rigorous four-step investment, execution and monitoring process to deliver optimal portfolio outcomes:
- Opportunity sourcing and preliminary review
- Credit and sustainability analysis; validation for investment
- Execution and portfolio construction
- Portfolio monitoring and exit
Team and expertise
Based in Paris, the award-winning Infrastructure Debt team is co-led by Stéphanie Passet, 24+ years of industry experience, and Vincent Guillaume, 17+ years of industry experience, under the supervision of Karen Azoulay, Head of Real Assets.4
The team has extensive, varied and complementary experience in asset management and investment banking including advising, originating, structuring, and managing infrastructure deals across multiple sectors. Since 2018, it has raised around EUR 2.9 billion and completed more than 80 investments in senior and junior infrastructure debt across Europe.5
The team is fully integrated within BNP Paribas’ 100+ strong Private Assets group and enjoys the support of various BNP Paribas Asset Management teams including our dedicated Sustainability Centre, Quantitative Research Group, Macro Research team, and the wider BNP Paribas network.
[1] BNP Paribas Asset Management’s Infrastructure Debt solutions have received multiple industry recognitions over the years including Scope Group’s 2024 Infrastructure Debt Award, ESG Investing’s 2022 Best Infrastructure Investment Fund Award, and Sustainable Investment Awards’ 2021 Infrastructure Fund of the Year Award.
[2,4,5] BNP Paribas Asset Management, as of 30 September 2024
[3] ESG = Environmental, Social and Governance. ESG assessments are based on BNP Paribas Asset Management’s proprietary methodology which integrates all three aspects of E, S & G.
Get in touch
Got a question? Our team is happy to help
Important information
This material is issued and has been prepared by BNP PARIBAS ASSET MANAGEMENT Asia Limited with its registered office at Suite 1701, 17/F, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong. This material has not been reviewed by the Hong Kong Securities and Futures Commission. It is produced for information purposes only and does not constitute:
- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
- investment advice.
Investors considering subscribing for the financial instruments should read the most recent prospectus, offering document or other information for further details including the risk factors available from your local BNPP AM correspondents, if any, or from the entities marketing the Financial Instrument(s). Investors should consult their own professional advisors in respect of investment, legal, accounting, domicile and tax advice prior to investing in the funds in order to make an independent determination of the suitability of the consequences of an investment. Investments involve risks. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. Past performance is not a guide to future performance.
Some of the services listed on this Website may not be available for offer to retail investors.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund’s) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.
This is not an exhaustive list of risks. For a complete description and definition of risks, please consult a client relationship manager or the global BNP Paribas Asset Management website: staging.bnpparibas-am.co.uk.