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Golding Capital Partners wins management mandate for infrastructure investments

Golding Capital Partners (GCP) now manages a EUR175 million mandate for infrastructure investments from Düsseldorf-based Nordrheinische Ärtzeversorgung (NÄV), one of Germany's largest private pension funds.

Under the terms of the mandate the commitment will be allocated to a globally diversified portfolio, with a focus on core/core plus investments and existing projects (brownfield investments). This mandate from NÄV takes GCP's funds under management in this asset class to over EUR1.5 billion.
The trend towards private-sector investment in public infrastructure remains unbroken. The consolidation of government budgets around the world means the state sector does not have the capital to fund the necessary infrastructure investments. For institutional investors this opens up a wide range of opportunities for alternative investments in the current low-interest rate environment. In order to take advantage of these opportunities NÄV is further increasing its commitment to the asset class, having initially appointed GCP to allocate EUR100 million. Since this allocation was fully committed to target funds in 2014 and 2015, the mandate was increased by an additional EUR75 million in December 2015.
GCP is now one of the main providers of infrastructure investments in Europe and has a team of experts dedicated to this asset class. In a highly competitive marketplace GCP's proven ability to open up the market for infrastructure investments, along with its long-standing experience of direct investments, constitute a significant advantage. "As a leading provider of infrastructure investments GCP is ideally positioned to give institutional investors access to attractive infrastructure projects. Thanks to our extensive network we have access to the first-tier funds, which are often closed to new investors, as well as to attractive secondary transactions and co-investments,” explains Dr Matthias Reicherter, Head of Infrastructure Investments at Golding Capital Partners.
For the NÄV portfolio we intend to make investments in classic infrastructure assets such as transport, energy and utilities, as well as in social infrastructure. The mandate will be diversified globally across established industrial areas, with a regional focus on Europe. In order to generate early current income the investment focus will be on funds in the core and core plus segments, existing projects involving public-private partnerships (PPP) and regulated industries such as public facilities, water and power utilities.
"Persistently low interest rates mean that we have also had to recalibrate our capital investments,” says Bernd Franken, managing director of NÄV. "The attractive risk-return profile and the possibility of generating early current income convinced us to increase our allocation to the infrastructure asset class. With GCP it was essentially their extensive network and positive track record that convinced us. Furthermore, the company offers customised reporting, tailored to our requirements. That makes GCP a preferred partner for our pension fund."
"The mandate from NÄV again confirms the sustained demand for individual investment solutions in the alternative investment arena,” adds Hubertus Theile-Ochel, Managing Director at Golding Capital Partners. "GCP is in an perfect position to meet this demand and has many years' experience of managing individual mandates." This sector already accounts for almost half of GCP's assets under management.
In addition to infrastructure, this strong investor demand is visible in the asset classes private equity and private debt. "After a record year in 2014, when we raised almost EUR800 million in new capital, we are well prepared to keep meeting the strong demand for alternative investments,” explains Theile-Ochel. "With our all-round investment expertise we will continue to satisfy our investor's requirements in the future and to offer differentiated investment strategies with attractive return potential. Secondaries and co-investments are an essential element of our comprehensive market access." 

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