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.
Investment risks
Private assets are investment opportunities that are unavailable through public markets such as stock exchanges. They enable investors to directly profit from long-term investment themes and can provide access to specialist sectors or industries, such as infrastructure, real estate, private equity and other alternatives that are difficult to access through traditional means. Therefore, any investment in private assets does require careful consideration, as they tend to have high minimum investment levels and may be complex and illiquid, as well as may be exposed to specific risks, including:
- ILLIQUIDITY OF THE SUB-FUND’S SHARES
- ILLIQUIDITY OF THE SUB-FUND’S INVESTMENTS
- CREDIT QUALITY
- LIQUIDITY RISK
- LONG-DATED NATURE OF MOST INVESTMENTS
- CONCENTRATION
- MARKET RISK
- INTEREST RATES
- FOREIGN EXCHANGE RATES AND HEDGING
For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KID.
[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.
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Important information
BNP PARIBAS ASSET MANAGEMENT Singapore Limited, “the investment management company”, is a company incorporated in Singapore with its registered office at 20 Collyer Quay, #01-01 Collyer Quay, Singapore 049319, Company Registration No. 199308471D.
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