Infrastructure

Private Infrastructure (Infrastructure Equity) refers to investments in unlisted infrastructure companies and assets that provide essential services to the economy and society. These typically include long-lasting, capital-intensive real assets with a long-term investment horizon and stable, predictable cash flows.  

Key infrastructure sectors include: 

• Energy & renewable energies (e.g. wind and solar farms, electricity transmission and distribution grids) 
• Utilities (e.g. water and sewerage infrastructure, waste and recycling facilities) 
• Transport infrastructure (e.g. toll roads, rail networks, airports) 
• Digital infrastructure (e.g. fibre networks, mobile phone towers, data centres) 
• Social infrastructure (e.g. hospitals, education and care facilities) 

Infrastructure investments can offer stable and long-term predictable returns. Long-term contracts are often in place, sometimes with inflation-related adjustment mechanisms. In addition, infrastructure investments often have a lower correlation to traditional asset classes, such as equities and bonds, and can therefore help to diversify a portfolio. 

It is possible to differentiate between infrastructure investments according to various factors, including risk profile and maturity level: 

• Core: Very established investments with high cash flow stability, low volatility and generally low operational risk. 
• Core+: Established investments with stable returns and additional optimisation or moderate growth potential, with slightly increased risk compared to Core. 
• Value‑Add: Investments with significant value creation potential, which is achieved through active management, operational improvements or strategic development. 

In addition, a distinction is made between brownfield assets (already operating) and greenfield projects (new developments). 

Swiss Life Asset Managers offers a variety of options for implementing strategies to meet different investment needs, including: 

• Evergreen funds with open-ended maturities and regular entry and exit opportunities 
• Closed-end funds with defined maturities 
• Co-investments in individual infrastructure companies or projects 
• Mandates specifically tailored to investors’ requirements 

Factors dictating the best structure include the investment horizon, liquidity preferences and level of investor involvement. 

• Direct investments enable direct participation in individual infrastructure companies or assets, offering a high level of influence over governance and value creation. 
• Fund‐of‐funds approaches invest in several target funds and allow broad diversification across managers, strategies and vintages. 
• Multi-manager approaches combine several investment managers within a solution and target structured manager diversification. 

Depending on the investment solution, these approaches can be used individually or in combination with each other. 

Swiss Life Asset Managers’ investment approach to infrastructure equity is based on stability, value preservation and long-term returns. As the asset management business of the Swiss Life Group with a strong insurance background, we adopt a consistently risk-averse approach and make targeted direct investments in essential core infrastructure which is vital to both the economy and society. 

The focus is on strict investment selection, active asset management and continuous value creation throughout the entire holding period. The aim is to minimise risks and create sustainable, long-term added value for our investors.