Skip navigation Scroll to top
LGT
Scroll to top

Infrastructure – an essential part of a private markets program

LGT Capital Partners invests in infrastructure to generate attractive long-term, inflation-linked and uncorrelated returns with strong downside protection characteristics, high credit quality and positive ESG characteristics, complementary to our existing private equity portfolios.

Since 2011
active in infrastructure
15tn
USD investment opportunity
>160
deals screened annually

Infrastructure assets such as roads, bridges, airports, utilities (electricity, gas, sewage and water), telecommunications, and public health and education facilities are essential for the efficient functioning of the economy and society. Long-term trends such as growing populations, digitalization, electrification, and decarbonization, along with constrained public sector finances, offer enormous investment opportunities for the private sector.

Stable and uncorrelated cash flows offer attractive diversification potential for long-term investors

LGT Capital Partners manages infrastructure portfolios that generate attractive inflation-protected returns over economic cycles by building diversified portfolios of essential infrastructure assets with strong visibility on cash flows and high barriers to entry. To achieve this we apply a careful deal selection, detailed and consistent investment due diligence, robust risk management, and active portfolio management. We believe sound environmental, social, and governance (ESG) management is critical to managing risk and creating value. We have a consistent and repeatable process for evaluating ESG risks and opportunities in all of our investments.

As part of the overall private equity team of more than 300 professionals across 15 global offices our dedicated infrastructure team has deep experience across primaries, secondaries, and co-investments as well as direct infrastructure investments. Through its experience in sourcing, structuring and managing infrastructure projects and companies, our global infrastructure team has gained deep knowledge of different regulatory regimes, contractual frameworks, and counterparty risks, which enables us to better understand and appropriately price the different risk-return profiles of the asset class. This has led to our infrastructure investment approach to be both highly complementary to our existing private equity portfolios while also providing the distinct attractive characteristics of the infrastructure asset class.

Our infrastructure team benefits from LGT Capital Partners’ deep private equity history, long track record, and existing relationships which have proven invaluable for access to high quality infrastructure managers, significant secondary deal flow, and attractive co-investment opportunities. Insights from our private equity portfolios also provide our infrastructure team with unique visibility into emerging infrastructure sectors typically first invested in by private equity managers, allowing us to invest in these sectors early and benefit as they become more mainstream for the broader infrastructure market over time.