Tuesday, 9th June 2020
Registration and refreshments
Opening remarks & market overview
World view: Picking and accessing the key investment destinations across the globe
For some time now, the infrastructure asset class has been a firm favourite with LPs across the globe as the first stop on the alternatives journey. Resulting in a growth in the industry, the competition for deals is fierce, with some GPs broadening their search for opportunities for deal sourcing purposes and expanding their offering to target a wider pool of LPs. Several key senior political figures around the world have tabled increased infrastructure as a strategic economic imperative and stimulus and are turning to infrastructure as an instrument of economic policy. A panel of experts discuss where we will see the next wave of large-scale infrastructure projects, and what LPs should do to achieve a balanced portfolio.
- What drivers are behind the call from agencies and governments for increased infrastructure spending?
- What geographies should global investors with an appetite for risk look at over the next five years?
- How do you pick between greenfield and brownfield investments, and open-ended and closed-ended funds?
- How are GPs managing and reporting on ESG in their investments?
- How great a concern is the threat of a global recession for infrastructure investors?
Networking coffee break
Japan: Spotlight on the deal market
The private sector continues to find opportunities for infrastructure investing, with the battle to win airport concessions making the headlines. Many offshore wind deals – now in the early stages – could potentially be realised, and expectations are high among overseas investors that these will eventually come to market. However, the question remains as to whether the infrastructure market will see a seismic shift that delivers more deals offering returns that are attractive to private capital. A group of investors will discuss the outlook, where they will be investing, and what the industry needs to do to develop and emulate other large mature economies.
- Where are the opportunities for GPs, and what is the pipeline and timeline for deals?
- How can investors participate in airport and offshore wind power projects?
- How can the market evolve to attract mainstream infrastructure players?
- What returns are being delivered, and how does this match investor expectations?
The corporate pension funds’ view on portfolio management: Establishing best practice
Effective portfolio management is an essential part of any infrastructure investment programme, particularly when building exposure to several markets across the globe with various strategies and risk profiles. The starting point is considered manager selection, underpinned by thorough due diligence, but this remains a challenge for LPs with limited resources and little to no on-the-ground presence. Utilising gatekeepers and advisors is key to finding the right GPs, dealing with the complexity of investing, and language and cultural barriers, not to mention monitoring and reporting. Our speakers share their tips on how you should commence and manage a balanced portfolio.
- What is the right balance of GPs in a global portfolio?
- How do LPs select the right partners and advisors to help them take the first steps into investments?
- What strategies are used for manager selection and monitoring?
- How should international funds approach domestic LPs when fundraising?
Spotlight on renewable energy: Where, when, and how to invest
In recent years, a renewed drive for a supportive policy and high-quality operators has provided fertile ground for increased investment in renewable energy infrastructure. So, which sectors of renewables are most investable – hydro, solar, wind, or newer energies – where are the best investments globally, how are deals being executed, and where does Japan fit in as a viable deal market? Will the momentum of the climate change agenda result in a more sustainability-focused approach and significantly increase long-term investment in renewable infrastructure? In this session, a panel of experts will discuss which technologies, projects, and funding structures stack up for investors, as well as the market conditions for returns.
- What types of renewable energy investments have delivered the best returns?
- Where are the best opportunities and markets globally for renewables?
- How do investors strategize between hydro, solar, wind, and the newer energies?
- How will GPs deliver returns in developed markets given the decrease of subsidies?
Finding deals in a competitive market: Non-core opportunities
A crowded core infrastructure space and high valuations have driven GPs to look beyond the traditional investments that have sustained the industry. By potentially avoiding the auction processes and identifying non-core opportunities, fund managers can provide a real competitive advantage. However, funds must be transparent about their strategies and risk appetite. It may also require specific expertise at the GP level to deliver operational value creation to enhance the growth of the asset, and ultimately improve performance and deliver a strong return. In this session, a panel of investors will debate the non-core infrastructure model, the pros and cons, and the return expectations.
- Which sectors provide the best non-core deals?
- What return expectations should LPs expect from these types of riskier assets?
- How is the need for value creation being managed with assets that require a hands-on operational approach?
- How has the pool of investable companies evolved, and what does this mean for the traditional infrastructure model?
Networking coffee break
The institutional investor: The next steps on the infrastructure journey
In recent years, large institutional investors in Japan have increased allocation in infrastructure and broadened their thesis to look at non-core opportunities, greenfield investments, and a mix of open-ended and closed-ended funds. As they have become more sophisticated, they have also transitioned from putting capital to work in captive funds to co-investing in deals and separate accounts. group of investors will share their strategies for investing in infrastructure, building internal capabilities, and investing through a downturn, as well as their views on global opportunities.
- How should you select your next investment, and what type of GPs are winning commitments?
- How do you plan for the next business cycle and invest in a downturn?
- How do you build a team capable of managing a diverse range of investments and strategies?
- Is ESG playing a larger role in asset allocation?
Closing keynote address