NN Investment Partners launches European Sustainable Infrastructure Debt Fund

19/11/18

• Infrastructure assets can be attractive for investors while delivering economic and social benefits • The NN (L) European Sustainable Infrastructure Debt fund addresses growing investor demand for high quality infrastructure debt investments with robust and predictable cash flows generated from assets that contribute to a more sustainable future

NN (L) European Sustainable Infrastructure Debt fund (‘the Fund’), which was officially launched on 15 November 2018, further expands NN Investment Partners’ (NN IP) sustainable franchise and meets the increasing demand for investments in real assets. Infrastructure debt is widely seen by many investors as being particularly attractive as it offers compelling risk-adjusted returns and at the same time contributes to providing essential public assets and services that generate significant social, environmental and economic benefits.

NN Investment Partners has a long history in the infrastructure market since it made its first infrastructure debt investments in 1992. The Fund aims to build a diversified portfolio of investment grade quality infrastructure debt across Europe in five core sectors, including social infrastructure, transportation, energy, utilities and digital infrastructure. Traditionally, the low correlation of infrastructure assets to economic cycles has attracted long-term investors seeking to diversify their portfolios, match their liabilities and earn attractive returns. NN IP, with the benefit of a long track record in the infrastructure debt market, has further refined its strategy to focus on infrastructure assets that offer measurable social and environmental impact without giving up financial returns.

Sustainable infrastructure can help both governments and investors to meet their carbon reduction targets, which are essential for moving to a low carbon economy. While the environmental factor is undoubtedly important and relatively straightforward to measure, many other social and governance benefits are often overlooked, such as expanding capacity, increasing efficiency and improving resilience to demographic change and the effects of climate change. NN IP adheres to the Equator Principles and will select investments for the Fund by applying its proprietary ESG model, ensuring a strict sustainability framework and benefitting from the advice of NN IP’s Responsible Investing team. The Fund will help to solve current infrastructure challenges, adding value for investors and societies across Europe.

Alistair Perkins, Head of Infrastructure Debt at NN Investment Partners, comments: “We are very excited to launch this new Fund, as it allows us to combine our in-depth knowledge and experience of infrastructure debt with the growing demand from our clients to invest in the real economy and contribute to the UN Sustainable Development Goals (SDGs). We are convinced that by carefully selecting sustainable investments, we can build a future-proof portfolio that enhances value for our investors while demonstrating a tangible contribution to a more sustainable economy and prosperous society”.

The Fund will be managed by NN IP’s dedicated Infrastructure Debt team. It leverages off the team’s established investment selection and credit processes while keeping a strong focus on diversification and sustainability. The Fund has a target annual gross return of 3%-4% and a duration of 12 to 15 years.


NN (L) European Sustainable Infrastructure Debt fund is a sub-fund of NN (L) Alternative Credit (SICAV-SIF), established in Luxembourg. NN (L) Alternative Credit (SICAV-SIF) is duly authorised by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg. Selected share classes of the NN (L) European Sustainable Infrastructure Debt fund will be registered in other EU member states in due course.

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About the author

Alistair Perkins

Alistair Perkins

Head of Project Finance, Infrastructure Debt

Experience since 1995

Business Experience

2013-to date Alistair is Head of the Project Finance team within the Alternative Credit Boutique of NN Investment Partners. He is responsible for building and managing the infrastructure and project loan portfolios for both NN Insurance and other institutional investors 

2013-2014 Lead PM Infrastructure Debt at ING IM

2012-2013 Head of Restructuring & Asset Sales, Dexia Management Services (1 year). Responsible for corporate restructuring, distressed debt and asset value preservation

2007-2012 Director, Global Project Finance, Dexia Credit Local (5 years). Responsible for arranging and executing infrastructure and energy transactions

2002-2007 Assistant Director & Head of UK Project Finance Advisory Team, NIBC Bank (5 years). Responsible for advising investors on project finance transactions

1998-2002 Vice President, Project Finance, CIT (New York 2 years; London 2 years). Responsible for arranging and executing project finance transactions via private placements to US institutional investors

1997-1998 Associate, Project Finance, Newcourt Capital, acquired by CIT in 1998 (1 year)

1995-1996 Civil Engineer, John Mowlem & Company plc, now owned by Carillion plc (1 year)

Qualifications

MBA from the University of Nottingham in 1996

Bachelor of Engineering (BEng) degree with First Class Honours from Oxford Brookes University in 1994

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