Direct infrastructure

Mandate · Portfolio


Mandate

The year 2015 saw the launch of the PKA AIP 2 Direct program, which is an extension of the PKA AIP 1 Direct program. PKA AIP 2 Direct covers the period from 2015 to 2017 and is intended to deliver DKK 7.5 billion (EUR 1.0 billion) worth of infrastructure assets to PKA’s current portfolio.

The focus for PKA AIP 2 Direct is to build a portfolio of complementary infrastructure assets, characterized by long duration, stable, and contracted cash flows with material downside protection, controllable risks, and strong governance structures. To achieve this, we look for infrastructure assets located in Northern Europe, including the UK, where regulatory regimes have historically been stable. We enter into long-term partnerships with utilities and asset managers with a stake in the long-term performance of the assets, which helps to ensure alignment with PKA.

The investment criteria for PKA AIP 2 Direct are as follows:

  • Cash profile: Long maturity cash flows with a significant fixed cash component
  • Ticket size: DKK 0.6-3.0 billion (EUR 70-400 million) per investment
  • Geography: Northern Europe, including the UK
  • Financial instrument: Equity, mezzanine, subordinated debt, or senior debt
  • Partnership model: Strong alignment with an operationally skilled asset manager
  • Costs: Low deployment costs per unit of invested capital and low monitoring costs

Portfolio - Direct Infrastructure

The list below includes all direct infrastructure investments managed by AIP.
InvestmentManagerInvestment typeAsset typeCurrencyCommitmentYear
Tees Renewable Energy PlantEquityBiomass-fired plantGBP150,000,0002016
Burbo Bank ExtensionDONG EnergyEquityOffshore windGBP330,000,0002016
Gode Wind 2DONG EnergyEquityOffshore windEUR288,000,0002014
GeminiNorthland Power Inc./SiemensSubordinated loanOffshore windEUR120,000,0002014
Butendiek Offshore Wind Parkwpd/SiemensEquityOffshore windEUR100,000,0002013
Anholt Offshore Wind FarmDONG EnergyEquityOffshore windDKK2,500,000,0002011