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As market leaders in our targeted sectors, we don’t ‘follow the herd’ in seeking out interesting and innovative opportunities. We have the necessary skill and experience to explore a wide range of opportunities. Our experience, relationships and flexibility allow us to find ‘hidden gems’ that other managers often overlook.

Unconventional approach

Environmental, social and governance considerations have always been integral to our investment selection and management. While our investments have a positive ESG impact implicit in their very nature, our pre-investment evaluation and due-diligence process examines potential ESG risks, opportunities and actions. It is a determining factor in whether we move forward with an investment, and how we drive positive change post-acquisition and beyond.

ESG proactive

With an approach taken by very few infrastructure managers, we seek to reduce risks and enhance the predictability of income. We usually achieve this through gaining greater control in the running of each underlying business, and not taking on external debt obligations. As part of this active approach to infrastructure investing, we usually own a project or buy a business outright to ensure our involvement in that company’s success is always as a decision maker rather than a passive bystander or shareholder. What that means for our investors is that they don’t own a sliver of equity beneath a pile of debt – they own the actual infrastructure.

Low-risk investments

Our strategy targets high, stable yields by owning stable, high profit margin infrastructure assets. The combination of our low-risk approach (e.g. no external debt) and our robust risk management processes when applied to such assets results in resilient and predictable long-term cashflows. These are delivered to our investors through regular distributions. Our approach can generate attractive, steady yields and, by not utilising high levels of debt like the majority of our peers - where the majority of cashflows are being used to service that debt and long-term returns are reliant on both the current and future cost of debt - risks are materially lower than the infrastructure industry average.

High yield, low risk

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Its importance to society, combined with the difficulty to substitute it, meant that historically many infrastructure assets were financed and owned by the state. Today these assets are increasingly owned and operated by private enterprises – often closely regulated by the state that previously owned them.
Stable societal demand leads to stable revenues that are less affected by the economy and market conditions than many other investment sectors. Infrastructure provides the opportunity to invest in stable, long-term assets with excellent ESG, cashflow matching and inflation-linked characteristics and to achieve attractive returns.

We define infrastructure as essential, long-life assets upon which the economic activity of society depends. For investors seeking long-term returns from investments which make a positive impact on our environment and society, infrastructure can be an attractive asset class.
It’s natural to think of things made from using a lot of concrete and steel when thinking about essential infrastructure but what makes it essential is that (a) it provides a service that is integral to our way of life; and (b) that service can’t readily be provided by others.

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"Our investment strategy allows investors the ability to combine attractive financial returns while positively contributing to the world we live in – now and in the future"

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We focus on a small number of sectors. We are focused on making good investments in sectors that offer investments that suit our clients’ requirements for stable, predictable income, not simply diversifying across sectors for the sake of it.
Our team has substantial experience across a wide number of sectors, which allows us to be highly selective in adding only the most attractive opportunities to our portfolio.

Contact the Infrastructure team <a href="mailto:RMInotifications@riverandmercantile.com" target="_blank" title="Email"> RMInotifications@riverandmercantile.com</a>

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Team Members

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Generating regular income from essential, sustainable infrastructure.

We focus on delivering long term, stable cash flows to investors through simple, long-life infrastructure. 

Infrastructure

Infrastructure

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