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Issue Q3/2012


B CAPITAL PARTNERS (BCP), an independent infrastructure investment advisor to institutional investors, who focuses on infrastructure, PPP and clean energy investments and offers „tailor-made“ solutions with specific risk/return profiles, would like to share with you the following news:

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Close of direct wind energy investment for German insurance group

BCP is proud to announce the closing of a direct acquisition of 100% interest in a portfolio of German wind assets with a rated capacity of approximately 35 MW for one of its clients.

BCP advised its client, an insurance group from Southern Germany, throughout the entire transaction, this is, it sourced, pre-negotiated and supported its client in all commercial and financial aspects of the investment.

Direct infrastructure investments are the investment approach of choice for a growing number of institutional investors, which aim to generate stable long-term returns at low costs with full control and transparency. BCP seeks to offer its ability to both identify and sort opportunities as well as implement and structure the most efficient form of acquisition to such institutional investors.

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Luxembourg financial services authority approves BCP role as fund initiator

BCP is pleased to announce that it has been approved by the Luxembourg financial services authority (CSSF) as the initiator of an energy and infrastructure fund. In that capacity BCP is the owner of the fund's GP and acts as the fund's sole advisor. This approval will serve as the foundation for the expansion of BCP's asset management activities in Luxembourg.

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James Farley joins BCP as Partner

BCP is delighted to welcome James Farley as new partner. With more than 15 years experience in the infrastructure sector, primarily with Babcock & Brown and Nomura’s Principal Finance Group, James will be a good complement to the existing BCP team. James joins as BCP increases its focus on direct investment strategi

www.b-capitalpartners.com/team/james_farley/

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New phone numbers

B Capital Partners has changed its telephone number. The team members are now reachable under the Swiss telephone number +41 44 518 5050.

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B Capital Partners sponsors the I3 2011/2012 Infrastructure Investment Survey

The survey has been conducted by Institutional Real Estate Inc. and is the second of its kind. Conducted in the summer of 2011, the survey includes the answers of 46 institutional investors from all over the world with combined overall assets under management of $1.8 trillion and infrastructure assets exceeding $48 billion. Among the main findings from investors’ responses are:

I. Continued healthy appetite for commitments to and investments in infrastructure

On average, survey participants reported target allocations to infrastructure of 5% vs 4.9% in the prior year. These target allocations varied significantly between different regions. Participants in Australia and New Zealand had higher target allocations (10-11%) while target allocations in Europe were lower (about 5%) and even lower in the US (about 3%).

II. The potential for relatively high income at a relatively low risk makes infrastructure investments attractive.

Inflation protection, high income over a long-term, and a risk profile similar to low-risk real estate or other real assets are the most desirable attributes of infrastructure investments. Most respondents (>80%) also indicated that current income on day one is important to them.

Interestingly only 40% of participants make infrastructure investments from a dedicated infrastructure allocation, the remainder coming from related allocations such as general real assets (19%), real estate (7%) and fixed income (5%).

III. Duration – a number of investors look for long investment durations of 20+ years

70% of investors are looking for investments with a duration of between 10 and 20 years and some 40% are looking for investments that exceed a duration of 20 years or are held in perpetuity. These responses underline that investors are increasingly comfortable with the longer-term nature of the infrastructure asset class.

IV. Closed-end funds remain popular, but desire to include direct investments

While a large majority of 70% are looking for closed-end funds, making it the most popular investment structure within the asset class, more than 40% of investors are open for direct and co-investments as an appropriate complement for closed-end fund investments. This significant interest is not surprising given that investors overwhelmingly focus on long-term investments that are difficult to accommodate in a traditional closed-end fund structure.

To receive a full version of the survey please contact B Capital Partners.

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Responsible for this Newsletter is:
B CAPITAL PARTNERS
Paolo Alemanni, Konstantin von Falkenhausen, Dr. Barbara Weber
Susenbergstraße 108, CH-8044 Zurich, Switzerland
office@b-capitalpartners.com
www.b-capitalpartners.com