The uncertainty we see today creates challenges, but also opportunities, for companies and their investors. In this climate, we firmly believe that offense remains the best defense. Our thematic investment strategy, which targets transformative trends, combined with hands-on value creation at asset level, is guiding our investment efforts and helping us to steer our portfolios through these choppy waters.
In August 2020, Partners Group invested over AUD 180 million in equity on behalf of its clients to acquire and construct the second stage of Murra Warra Wind Farm ("Murra Warra II") in Australia. The construction is expected to be completed by mid-2022. The wind farm will comprise 38 GE Cypress 5.5MW turbines with a total nameplate capacity of 209MW, located approximately 30 kilometers north of Horsham in the state of Victoria, next to Murra Warra I.
Carmela Mondino from Partners Group's ESG & Sustainability team, discusses the firm's impact-at-scale strategy and explains how Partners Group implemented Principle 3 of the IFC Operating Principles for Impact Management – "Establish the Manager's Contribution to Impact Management" – at portfolio company Techem. Through its active ownership model, Partners Group worked hand-in-hand with Techem's management team to implement initiatives to the benefit of the environment and all stakeholders.
In January 2020, Partners Group agreed on behalf of its clients to acquire an 80% equity stake in VSB Group, a leading European developer, owner and operator in the renewable energy sector. The company's proven development track record, strong and engaged management team, and sizable project pipeline make it an excellent fit for Partners Group's platform expansion strategy.
Clean energy, digitalization and e-mobility – these are just a few of the investment themes currently guiding our infrastructure team's bottom up sourcing efforts. Watch our interview with Esther Peiner, Managing Director, Private Infrastructure Europe, to find out how we identify and capitalize on these themes despite a challenging market environment for infrastructure investors.
"We want to lend to sectors that are stable, companies that are highly cash flow generative, but also business models that we would like to own if need be." Summarizing Partners Group's outlook for the private debt market, Alexander Ott highlights the importance of thinking like owners and applying "private-equity-style" due diligence to private debt assets in order to navigate a competitive, borrower-friendly environment.
Supported by low interest rates, valuations in the real estate market remain high despite the threat of an economic slowdown. Mike Bryant, Co-Head Private Real Estate, outlines the four themes behind Partners Group's investment approach in this environment, and explains how we balance the generation of returns from active value creation and from defensive characteristics such as rent collection.
Investor demand for the infrastructure asset class continues to rise, but so do asset valuations. According to Partners Group's Esther Peiner, the key to navigating this environment is focusing on investments that have a value-add component and that offer the opportunity to build value instead of buying it.
Watch Esther's interview to find out how Partners Group approaches the very hands-on job of creating value across its infrastructure portfolio through active asset management.