Core-plus/value-add Infrastructure

Asian Pension Plan | Winter 2020

Engagement at a glance

Core-plus/value-add Infrastructure

Bfinance is supporting an Asian pension plan and its gatekeeper in building out a global infrastructure portfolio with an allocation of up to $150 million to fund one or more managers implementing core-plus/value-add strategies spanning OECD countries. The client’s target return is 10% net to complement its existing core holdings.

Client-specific Concerns

Since January 2020, bfinance has been supporting this client in its ongoing search for core-plus/value-add infrastructure managers in OECD countries. The client wanted to invest in pooled funds and had expressed a preference for diversified exposure across traditional infrastructure assets, although it was open to emerging sectors. To that end, managers were required demonstrate their track record in core-plus/value-add investments.


  • Planning allocations to optimise pace of commitments: bfinance undertook portfolio-level analysis to help the client assess its potential commitments and better understand its infrastructure exposures and cash flows.

  • Analysing the changing universe of offerings: On a regular basis, bfinance provided the client with updates on the manager universe and fundraising timetables, and helped its team identify several routes to attain double-digit returns – including large-cap managers investing in traditional infrastructure assets; managers seeking to be ‘new entrants’ in emerging sectors; and specialists in niche sectors, such as digital infrastructure and cold storage.

  • Assessing the overlap between new and old: The client sought to understand the complementarity of managers’ strategies relative to its core infrastructure portfolio and the potential combinations needed to achieve double-digit net returns. The client also wanted to explore whether assets targeted by prospective managers would remain within the boundaries of infrastructure or veer into ‘asset-lite’ private equity-style businesses.

  • Adapting to market insight: The client has chosen two managers (to date); one with a bias toward European assets, and one with a bias toward North American assets.

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