Infrastructure has become one of the topics we pay frequent attention to. It’s remarkable how often it comes up. But of you think about it, the global need for infrastructure investment, the attention paid by the political classes, the importance of the asset for the pension manager have combined to make this once dusty-seeming topic seem of the highest importance. The fact that it has the allure of being inflation-resistant has brought additional attention in these troubled times.
Pontoro - infrastructure tokenisation
Our most-read infrastructure story for 2022, published in June, describes a platform that leverages tokenisation to expand the range of institutional investors who can take part in private market infrastructure debt asset. It came to us during a pitch session at a May tokenisation event called the Finverse Forum in Luxembourg. Antonio Vitti, the co-founder and CEO of an American early stage fintech named Pontoro spoke about his firm’s digital assets platform.
About 300 billion dollars of such assets are underwritten by the largest underwriting banks every year, he said, but these institutions are becoming increasingly challenged in meeting the growing demand. He pointed out that industry sources are predicting a 15 trillion dollar funding gap due to there being fewer banks and the imposition of stringent capital requirements, but that his platform could help.
Russell launches infrastructure fund
In October, we brought you the news of global investment solutions provider Russell Investments announcing a Luxembourg domiciled Article 8 global unlisted infrastructure fund. It’s classified as “light green”. The open-ended private markets fund, registered as an indirectly regulated Raif, was set up to address the need for new infrastructure solutions to meet social and economic needs, like many other Raifs.
The fund gives exposure to a global, diversified portfolio with a target return of 4% and was launched in response to strong demand for private markets solutions in the institutional and wealth management area. It gives investors access to assets with a strong competitive position and able to deliver long-term sustainable cashflows. Carne Global acts as the alternative investment fund manager.
Cube Infrastructure acquires MVV’s Czech energy subsidiary
In late August, we reported Luxembourg infrastructure investment manager Cube’s move to take over German energy company MVV Energie AG’s Czech energy business. The transaction closed in December. Cube has a pattern of buying companies in order to introduce “cleaner” solutions before selling them on. The company also has a preference for buying properties in the “green transition” area across Europe.
The transaction was handled through Cube’s “Cube Infrastructure Fund III” brownfield fund. The unit they’re buying provides energy services to customers in 15 cities, and is one of the leading heat producers in the Czech Republic, selling about 690Gwh of heat,. It’s also active in power generation (selling 170 GWh of power), water management and electronic communication services.