Gravis’ Post

Joining’s today’s Global Investment Summit at Hampton Court Palace (pictured) , Equitix CEO, Hugh Crossley joins Prime Minister Rishi Sunak, UK Government officials and more than 200 top CEOs and investors in science, tech, infrastructure, renewables and more.   The PM announced that investors have more than tripled their commitment into UK projects and capital since the 2021 summit, equating to £29.5bn. “Global CEOs are right to back Britain - we are making this the best place in the world to invest and do business. From giving businesses the biggest tax cut in recent history last week, to our culture of innovation and thriving universities producing some of the finest minds in the world, ours is truly a nation of opportunity.”   Business & Trade Secretary Kemi Badenoch said: “The numbers speak for themselves: we have the third highest levels of inward investment in the world at $2.7 trillion, we’re number one in Europe for new investment projects, and last year alone we created 107,000 jobs through inward investment. People want to invest in a country with vision, ideas and growth, and our Summit showcases all these qualities and proves why the UK is the most exciting and innovative place in the world to invest.” Equitix is one of the largest infrastructure investors in the UK with investments of more than £40bn in enterprise value across renewables, transport, social infrastructure, utilities, and telecom infrastructure. We are excited about the continuing possibilities the future holds for the UK and the enormous role infrastructure investment plays in that future. #globalinvestmentsummit #ukgov #infrastructureinvestment #infrastructuretolife

6 years and counting. No 50 5 Years, 5 Months, 5 Days, 22 Hours A conversation last week with an #infrastructure investor suddenly brought home to me the significance of the announcement on 12 January of the acquisition of Global Infrastructure Partners (GIP) by BlackRock. The scale and >25x multiple of the transaction, and what it means for the GIP founders, has dominated much of the media coverage. But it is far more important than that. What the deal signals, I believe, is the infrastructure finance market maturing from adolescence to adulthood, and that should matter to all of us, because private financial investment is currently the weakest link in our path to net zero and infrastructure asset resilience. Announcing the deal Blackrock Chair and CEO Larry Fink said “Infrastructure is one of the most exciting long-term investment opportunities, as a number of structural shifts re-shape the global economy…Policymakers are only just beginning to implement once-in-a-generation financial incentives for new infrastructure, technologies and projects”. Note that the deal is not a one-off. Only four days later General Atlantic announced the acquisition of Actis, an investor in sustainable infrastructure. And on 7 February infrastructure manager Ancala sold a minority stake to global investment firm Vontobel. Everything points to the world’s biggest private equity businesses realising that infrastructure is the world’s biggest investment opportunity. Finally. GIP was founded only in 2006. It was a late entrant in a wave of infrastructure investor start-ups that began around 2002. Literally hundreds were formed and most of them quietly evaporated, but some like GIP have grown into hugely successful businesses. But even managing $100bn in infrastructure assets meant GIP was just a big fish in an infrastructure village pond. I hope non-infrastructure readers will appreciate this piece isn’t me just indulging my infrastructure obsession. Estimates vary but we need perhaps $100 trillion invested in the transformation of the world’s economy to one that is fully decarbonised and protected against the inevitable worsening of climatic impacts. And we need that money now. The GIP deal should give us all hope that the financial sluice gates are now being opened. --------------- This series is edited versions of the emails I am sending once a week to KPMG colleagues with my personal reflections. Each one is published here a few weeks later, time-stamped to the time remaining on the carbon clock for 1.5 degrees at the time I sent the original email

My thought piece for the GIIA on why the Office for Investment is good for investors and what it will need to continue to be successful.

This week’s Suits the C-Suite article is titled “How public-private partnerships drive sustainable growth.” It is written by Marie Stephanie C. Tan-Hamed, a Strategy and Transactions (SaT) Partner and the PH Government and Public Sector leader of SGV & Co., and Neil Paurom, an Associate Director for Infrastructure Advisory at SGV & Co. In this article, the authors discuss insights from the SGV Knowledge Institute event last week, “Philippine Economic Outlook: Public and Private Partnerships as a Catalyst for Sustainable Growth.” They explain how public-private partnerships (PPPs), contractual agreements between the government and a private company targeted toward financing, constructing, operating, and maintaining infrastructure projects that traditionally fell under the public sector, are powerful tools for driving economic progress. The authors share areas of opportunities for PPPs, implementation challenges, and fiscal policy developments in relation to PPPs. Click on the photo to read the article. SGV’s “Suits the C-Suite” column is published every Monday in BusinessWorld’s Economy Section.

Now on-demand for investment-minded members, the latest special as part of our ongoing 'Why now for Investment Trusts?' programme, Nick Britton, CFA, MCSI, the Research Director at the The Association of Investment Companies (AIC) introduced Philip Kent the Chief Executive of Gravis and investment advisor to GCP Infrastructure Investments, a London-listed investment trust focused on infrastructure. This great conversation looks at 'Why now for Investment Trusts?' from Gravis' perspective. The rewards and challenges of working in this sector, the benefits of the Investment Trust structure, particularly its ability to match the liquidity demands of illiquid infrastructure assets while providing daily liquidity for shareholders, the importance of disclosure and transparency in public market structures, and the role of independent boards in looking after shareholders' interests. Digging deeper they also discuss the current investment landscape, focusing on the UK government's efforts to support new asset classes and the potential for infrastructure investments across various sectors. Highlighting the importance of decarbonizing the electricity grid, heat, transport, and industrial sectors, and the role of infrastructure in addressing social challenges and supporting the digital economy. Phil also commented on the new government's policies, including changes in planning legislation and the increase to the Contract for Difference round, while expressing cautious optimism about the National Wealth Fund and its potential impact on private sector capital. He emphasized that infrastructure investments offer a defensive and long-term income, making them an attractive option for investors. Phil, the CEO of Gravis and manager of the GCP Infrastructure Investments trust for about 8 years, highlights the three objectives: delivering income, diversification, and capital preservation. He emphasises having the ability to adjust its investments based on the evolving infrastructure sector and its focus on debt for payment stability. He includes thoughts on the importance of sustainability and ESG objectives. and the potential of infrastructure investments across various sectors. Available in the Investment Space on Octo.

Interesting read, we really need to step up investment in public utilities and infrastructure

MoFo’s Steve Tran was quoted by The Business Times in an article that explores the ongoing challenges in the private equity landscape, hot sectors for private equity investments, and outlook for the region in 2024. Read more. https://lnkd.in/e4Xq6kyA

With a growth rate of 3.1%, our island is thriving. Stability, confidence, and reform are opening doors for new investments. The Association of Large Investment Projects proudly contributes to this success story, representing projects exceeding €8 billion. #CyprusDevelopment #InvestmentOpportunities #ALIP10YearsStrong

📘 [#diversification #infrastructure] https://lnkd.in/eZq7cq7m Delighted to be featured on the Savvy Investor list of top papers to read this month. In the paper “Achieving Diversification in Unlisted Infrastructure“, produced with the support of Long-Term Infrastructure Investors Association, Frederic Blanc-Brude, Abhishek Gupta and Moataz Farid, PhD examine two issues relevant to diversification and infrastructure investment:  ✔️ first, they look at #portfolioconstruction and what it means to build a “well-diversified” portfolio of unlisted infrastructure equity;  ✔️ second, they turn to strategic #assetallocation and examine the potential diversification benefits gained by adding infrastructure to the asset classes that make up a typical portfolio.   Read more and download the full paper: https://lnkd.in/eCGawdgj

Our paper is featured at the Savvy Investor list of top 10 papers to read! If you haven’t read it yet, make sure to know how we achieve diversification with unlisted infrastructure investments.