Investing in sustainable infrastructure assets

Our infrastructure offering is a unique opportunity to invest, alongside the Storebrand Group, in high quality, sustainable infrastructure assets.

Our investment focus

Working closely with partners, we invest directly in high-quality infrastructure assets across the energy, transport, communications, and water & waste sectors within Europe and the United States. Our focus is on real assets that provide essential services, enable sustainable transformation, generate stable cash flows and provide partial inflation protection. Clients investing in Storebrand Infrastructure Fund will invest alongside Storebrand, a long-term anchor investor in infrastructure.

Enabling the transformation to a sustainable economy

Our infrastructure strategy focuses on enabling sustainability transformation. Storebrand, a pioneer in sustainable investing since 1995, believes that investing in companies well-positioned to deliver on the UN’s Sustainable Development Goals (SDGs), will deliver better risk-adjusted long-term returns for our clients.

Within infrastructure, this means that we focus on investments that are:

  • central to societies' sustainability agendas
  • consistent with Storebrand's Sustainable Investment Policy
  • prefaced by a thorough ESG due diligence

 

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Megatrends driving  infrastructure transformation

The infrastructure sector is at an inflection point, with several megatrends driving significant opportunities for investment in infrastructure assets. These drivers include:

  • the race to meet sustainability objectives
  • continued digitalisation
  • demographic shifts
  • secure sources of energy supply
  • upgrades to existing assets

The megatrends driving infrastructure transformation have in many cases been shaped by official transformation agendas. For example, within Europe, the European Commission will mobilize at least €1 trillion in sustainable investments over the next decade through the European Green Deal Investment Plan. In the US, Congress recently passed President Biden's "Infrastructure Investment and Jobs Act" demonstrating a similar commitment.

Storebrand's sector focus 

Our sector focus revolves around

  • offshore and onshore wind
  • solar 
  • district heating
  • power transmission
  • battery storage
  • electrified means of transport
  • telecom
  • water and waste management

Within these sectors, we take a flexible approach focusing on construction-ready or operational assets. A flexible approach to the life cycle stage widens the investment universe and is also an important tool when searching for investments where competition for deals is less intense. 

However, we avoid investing in assets in the early development phase, where binary risks related to permits and basic commercial framework give the investment a risk profile which does not match the objective of Storebrand Infrastructure Fund. 

Aligned interests

Within infrastructure, we offer a model where clients invest alongside entities of the Storebrand Group, which are long-term investors in this area. With our group companies as anchor investors, this helps to validate our focus on long-term commitments, and a conservative risk profile.

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Case study - Agility Trains East

Storebrand Infrastructure Fund has, in partnership with AIP, invested EUR 450m in Agility Trains East in the UK. 

Investment case

The asset consists of 65 electric train sets replacing diesel trains on the East Coast Main Line, a key transport route from London to Scotland.

The trains are leased to a train operator on a 27-year availability-based lease contract that is guaranteed by the UK Department for Transport. A full scope operations and maintenance (O&M) contract with Hitachi, including performance guarantees, is in place. 

Sustainability impact

The asset consists of 65 electric train sets replacing diesel trains on the East Coast Main Line, a key transport route from London to Scotland.

The trains are leased to a train operator on a 27-year availability-based lease contract that is guaranteed by the UK Department for Transport. A full scope operations and maintenance (O&M) contract with Hitachi, including performance guarantees, is in place. 

Powered by an experienced team

We believe that relevant skills and a track record of success are essential criteria for success in infrastructure investment. To ensure this, we have chosen to engage via a strategic partnership model, where the deal sourcing, diligence process and day-to-day management of assets is conducted by our carefully selected investment partners in cooperation with our in-house team.  

Storebrand Infrastructure Fund currently cooperates with two strategic partners with sizeable teams and broad experience from investments and asset management within infrastructure.

In addition to the core team actively engaged in conducting deals and post-transaction management, Storebrand has established an Advisory Board consisting of experienced managers across areas of asset management within the Storebrand Group 

Storebrand Infrastructure Advisory Board

Dagfin Norum
Chief Investment Officer
Storebrand Asset Management

Trond Eriksen
Chief Investment Officer
Storebrand Life Insurance

Torstein Hagen
Head of Debt Investments
Storebrand Asset Management

Philip Ripman
Head of Solutions
Storebrand Asset Management

Want to invest?

Get in touch with our regional client executives to get advice and deep-dive into our products and services.

Historical returns are no guarantee of future returns. Future returns will depend, among other things, on market developments, the manager's skills, the fund's risk profile and management fees. The returns can be negative as a result of price losses. There is risk associated with investments in the fund due to market movements, developments in currency, interest rates, economic conditions, industry- and company-specific conditions. Before investing, customers are advised to familiarize themselves with the fund's key information and prospectus, which contains further information about the fund's characteristics and costs.