Infrastructure IV

Windpark

Zurich investment foundation Infrastructure IV

An infrastructure co-investment involves direct participation in an infrastructure investment alongside an infrastructure fund. Direct access reduces your fees vis-a-vis a fund-of-funds solution and the so-called J-curve.
2
trillion US dollars
is roughly the annual global need for infrastructure investment according to the OECD.
1
percent
The approximate infrastructure share in Swiss pension funds is that low
10
percent
Infrastructure permits revised BVV2 in a dedicated investment class for Swiss pension funds

Overview of the target portfolio

  • Main focus on co-investments in Western Europe of already operational brown-field infrastructure investments
  • Addition of secondary funds and primary funds possible
  • Well-diversified across countries, sectors and sponsors 
  • Strong focus on regular attractive returns
  • Thanks to the co-investment approach of brownfield investments, the so-called "J-curve effect" is weakened or eliminated
  • A veto right ensures that we can represent the interests of investors as well as possible
Fewer details
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Diversification

  • Focus on co-investments (80-100%)
  • The target is approx. 15 co-investments (max. 7% exposure per investment)
  • Max. 25% per sponsor
  • Max. 40% per sector 
  • Max. 33% per country
  • Max. 40% per investment year 

Conservative characteristics

  • Focus on already operational brownfield investments with regular returns reduces construction risks
  • Preference for contracted investments, preferably inflation-linked and availability-based, which reduce the correlation to other financial risks
  • Preference for government or local authorities as counterparties in order to reduce counterparty risks 
  • Preference for core/core+ investments with conservative characteristics for more stability

Access to the most attractive opportunities

  • The presence at six European locations permits access to deal flow and as a result the selection of the best investment opportunities
  • Due to good relationships with sponsors, access to high-quality deals is available
  • The ESG criteria are firmly anchored in the investment process with an additional exclusion list

Institutional approach and service

  • The investment philosophy and service are tailor-made for Swiss pension funds
  • Local presence: Experts are available both locally and in Switzerland
  • We represent your interests and assume the monitoring, also thanks to our right of veto
  • Three levels of diligence – Sponsor, Access Capital Partners and Zurich Invest – ensure full transparency without additional costs

What makes our managers stand out?

  • Access Capital Partners is an independent, owner-managed, private asset investment manager.
  • More than 80 experts contribute their expertise in private markets.
  • The managers of Access Capital work at six locations across Europe.
  • Access Capital Partners has been a renowned provider of infrastructure investments since 2008.
  • Its focus is on co-investments in conservative brown field investments, which generate regular attractive returns.
  • The ESG criteria are a fixed component of the investment process. In addition, particular sectors are explicitly excluded by Zurich Invest Ltd.

Successful co-investment approach in infrastructure

The Zurich Investment Foundation has been successfully applying such a co-investment approach to infrastructure investments since 2013. Since 2013, more than 30 co-investments have been made and a total of more than one billion US dollars in capital pledged in three tranches.

Focus on brownfield investments with regular returns

The focus is on already operational brown field investments, which already generate an attractive regular return. The conservative orientation with reduced J-curve, greater liquidity, and a low correlation to the gross domestic product and other asset classes ensure stability in the portfolio.

Tax and cost-efficient structure

Attractive conditions: The management fees are levied on the net inventory value and not on the pledged capital. In addition, the fee layer is for the most part waived at the primary fund level. This results in a total expense ratio (TER) that is much lower when compared to a conventional fund-of-funds solution. 

Key facts

Name Zurich investment foundation Infrastructure IV
Legal structure Investment foundation under Swiss law
Investor group Pension funds with Swiss domicile
Currency Euro (unhedged)
Auditor PricewaterhouseCoopers (PwC)
Minimum commitment 150 million euros
First close Q1 2022
Final close 12 months after the first closing
Investment periode 4 years (with possible extension option by 1 year)
Term 12 years after final closing (with possible extension option by 3x 1 year)
Management fee 1.1% (on the net asset value)
Performance fee Hurdle: 4.5% cash yield
cap: 5.15% cash yield 
(manager receives the yield exceeding 4.5%, limited to 0.65% p.a.)
Additional binding to achieve staggered multiples
Expected TER Approx. 1.50–2.50% (dependent on performance fee)

Our advisory service

Would you like further information? We would be glad to advise you.
Markus Binder
Markus Binder
Head of Institutional Customers
Hans Baumann
Hans Baumann
Customer Advisor Institutional Customers
Oana Ardelean
Oana Ardelean
Customer Advisor Institutional Customers
Marcel Wüthrich
Marcel Wüthrich
Customer Advisor Institutional Customers
Thomas Sonderegger
Thomas Sonderegger
Customer Advisor Institutional Customers
Peter Bezak
Peter Bezak
Consultant Relations & Communication

Address

  • Zurich Invest Ltd
    P.O. Box
    8085 Zurich