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.
40+ years of experience
Extensive global origination & execution track record
Multi-cycle experience
Deep network
Significant partnership experience
Global directors experience
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).
Responsible Investment
The team believes responsible investing is an important element of both risk management and creating long-term value. Material ESG factors are integrated throughout the investment lifecycle: partner selection, investment screening, due diligence, and investment management and governance.1 | 2
ESG Integration
The team believes environmental, social, and governance (ESG) factors can pose both investment risks and opportunities. Material ESG factors may be incorporated at various stages throughout the investment lifecycle, such as during initial investment screening and due diligence.1
1ESG integration does not apply to certain exposures or security types, including, but not limited to certain money market securities, currency or derivative instruments. Where ESG integration is applied, the weight given to ESG factors in an investment decision depends on the investment team’s assessment of that ESG factor’s potential impact on the performance of the security and/or the fund. For funds where ESG factors are not part of the investment objective, ESG factors are generally unlikely to drive investment decisions on their own, and, in some cases, may not impact an investment decision at all.
2Material refers to ESG factors that are most likely to have an impact on the financial performance of an issuer/security, and may depend on different factors such as the sector and industry of the issuer.