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Investment Principles

Sector

  • Transportation, Social Infrastructure
  • Other segments (e.g. utilities and telecom) if in line with Parker Capital’s capabilities and values

Geography

  • Initial focus on the United States
  • In partnership with key stakeholders, eager to apply capabilities overseas in OECD countries

Portfolio Construction

  • Greenfield assets (new construction, modernization and state of good repair assets) in order to truly leverage Parker Capital’s depth of expertise
  • J-Curve effect can be mitigated via:
  • Invest in minority-majority equity positions

Returns

  • Mix of yield and capital appreciation during de-risked, post-construction period
  • Risk-adjusted return of 10-12% gross IRR
  • Use of leverage aligned with the cashflow/risk profile of each asset to enhance resilience of returns
  • Ability to increase asset performance through active asset management during operations

Sourcing

  • “C-suite” engagement at procurement agencies raises credibility and minimizes entry barriers in case of unsolicited proposals
  • Parker network key for off-auction/negotiated opportunities
  • Can participate in wider auctions in selected meaningful cases, i.e. where a competitive advantage clearly exists
  • Access to high-priority projects with a proactive focus on environmental, social and governance (“ESG”) values

Experienced Management →