The RBC GAM Private Markets Global Infrastructure Investment team seeks to provide investors with direct access to a globally diversified portfolio of high-quality core/core+ private infrastructure assets with the objective of generating attractive risk-adjusted returns comprised of income and capital gains.

Team structure

The team is led by Andrew Hay, Managing Director & Head, Global Infrastructure Investments at RBC Global Asset Management Inc. (RBC GAM Inc). The team is comprised of infrastructure investment professionals with a broad and deep network of industry contacts, and extensive experience that includes senior roles in origination, investing, and governance at Canada’s largest pension plans. The team leverages the internal support of RBC Global Asset Management (RBC GAM)’s investment and operational platform as well as the external support of its experienced and aligned co-investment partners and advisors.

Team experience

40+ years of experience

Over 40+ years of combined experience in the infrastructure space

Extensive global origination & execution track record

Robust screening and investment process

Multi-cycle experience

Experience underwriting both steady state as well as opportunistic investments through multiple cycles

Deep network

Broad and deep network across global institutional infrastructure market

Significant partnership experience

Significant experience negotiating partnerships across geographies and sectors with a wide range of partners

Global directors experience

Deep global board of directors experience in Canada, U.S., UK, and Australia

Investment philosophy and style

Investment selection

Investing in high-quality private infrastructure assets should provide stable and predictable cash flows over a long-term investment horizon. The team targets investments likely to benefit from attractive economic growth, positive demographic trends, strong and consistent contractual income returns, and inflation sensitivity. Investments should operate in regions with stable and predictable regulatory regimes, and tested rule of law.

Partner selection

The co-investment partnership model provides the team with support during the two most operationally intensive phases of the lifecycle of a private infrastructure asset: investment due diligence and asset management/value creation. The team proactively seeks co-investment partners in relevant sectors and geographies that are experienced in sourcing and executing investment opportunities and acting as responsible asset managers and owners. These partners must also demonstrate alignment, established through significant equity invested alongside the fund, a long-term investment horizon, and exceptional reputations and values.

Portfolio design

The team seeks to generate attractive risk-adjusted returns consisting of both yield and capital appreciation. They aim to achieve this by investing in a portfolio of core and core+ private infrastructure assets diversified by co-investment partner, sector, value driver, and geography, with a focus on developed market countries included in the Organization for Economic Co-operation and Development (OECD).

Investment process

A disciplined and replicable investment process is a fundamental requirement of our approach. Our investment process is comprised of five major steps, described on the cards.

Each step in the investment process benefits from an experienced team of professionals specializing in private infrastructure investments, which is significantly augmented by the other research and investment capabilities within RBC GAM. The RBC GAM Infrastructure Investment and Governance Committee serves as an oversight body with respect to the team's strategy and its assets.

1

Development of the investment strategy and portfolio construction

This includes establishing desired geographic and sector exposures, ensuring diversification across the portfolio, developing investment policies, and negotiating governance arrangements with co-investment partners.

2

Investment selection

The team identifies and selects investment opportunities from a proprietary global network that is augmented by co-investment partners. This produces a deep and diversified pipeline of investment opportunities for the team to consider.

3

Investment approvals

Investments are assessed through a multi-stage due diligence process that considers the investment opportunity, transaction dynamics, and portfolio fit. Risks are analyzed to consider pricing implications or mitigation plans. A small selection of investments will clear this rigorous process and, with the recommendation of the RBC GAM Private Markets Global Infrastructure Investment team, an investment decision is subject to approval by the RBC GAM Infrastructure Investment and Governance Committee. The team works closely with co-investment partners and external advisors throughout this due diligence process.

4

Investment management and reporting

The team works alongside co-investment partners and the executive management team of the investments to execute on responsible value creation plans, while ensuring timely and accurate reporting of investment performance.

5

Exit

Although the strategy will result in long-term hold periods of assets, the team monitors and regularly assesses the opportunity to exit any investment. The strategy ensures discretion over the disposition of assets to provide liquidity (if needed) or to realize value for investors.

Investment process

A disciplined and replicable investment process is a fundamental requirement of our approach. Our investment process is comprised of five major steps, described on the cards.

Each step in the investment process benefits from an experienced team of professionals specializing in private infrastructure investments, which is significantly augmented by the other research and investment capabilities within RBC GAM. The RBC GAM Infrastructure Investment and Governance Committee serves as an oversight body with respect to the team's strategy and its assets.

1

Development of the investment strategy and portfolio construction

This includes establishing desired geographic and sector exposures, ensuring diversification across the portfolio, developing investment policies, and negotiating governance arrangements with co-investment partners.

2

Investment selection

The team identifies and selects investment opportunities from a proprietary global network that is augmented by co-investment partners. This produces a deep and diversified pipeline of investment opportunities for the team to consider.

3

Investment approvals

Investments are assessed through a multi-stage due diligence process that considers the investment opportunity, transaction dynamics, and portfolio fit. Risks are analyzed to consider pricing implications or mitigation plans. A small selection of investments will clear this rigorous process and, with the recommendation of the RBC GAM Private Markets Global Infrastructure Investment team, an investment decision is subject to approval by the RBC GAM Infrastructure Investment and Governance Committee. The team works closely with co-investment partners and external advisors throughout this due diligence process.

4

Investment management and reporting

The team works alongside co-investment partners and the executive management team of the investments to execute on responsible value creation plans, while ensuring timely and accurate reporting of investment performance.

5

Exit

Although the strategy will result in long-term hold periods of assets, the team monitors and regularly assesses the opportunity to exit any investment. The strategy ensures discretion over the disposition of assets to provide liquidity (if needed) or to realize value for investors.