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
We make direct investments in high-quality infrastructure assets in Europe and North America. By investing within the themes “energy transition”, “decarbonization” and “digitalization”, our focus is on real asset that provide essential services and enable sustainable transformation. We invest with a long-term horizon and target assets that 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 aims to support and drive sustainable development. 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 in shaping sustainable and resilient economies
- consistent with Storebrand's Sustainable Investment Policy
- prefaced by a thorough ESG due diligence
The investments of Storebrand Infrastructure Fund will primarily contribute to the achievement of UN SDGs 7, 9, 11 and 13.
Megatrends driving infrastructure transformation
The infrastructure sector is at an inflection point, with several megatrends creating 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 has established several strategies to boost investments into sustainable infrastructure. The European Green Deal Investment Plan, announced in 2020, aims to mobilize EUR 1 trillion in sustainable investments by 2030. In the US, both the Infrastructure Investment and Jobs Act and the Inflation Reduction Act represent significant commitment towards investments in the US infrastructure and energy sectors.
Aligned interests
Within infrastructure, we offer a model where clients invest alongside entities of the Storebrand Group, a long-term anchor investor in infrastructure.
Storebrand's sector focus
We invest in various sectors that fall within our three investment themes.
Energy transition, such as renewable energy production and storage
Decarbonization, such as electric transportation modes and industrial decarbonization
Digitalization, such as fiber networks and data centers
Within these sectors and technologies, we focus on assets that display true infrastructure characteristics and provide stable, long-term cash flows and partial inflation protection.
Case study - Agility Trains East
Storebrand Infrastructure Fund has, via the partnership with AIP, invested EUR 105m 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
According to the UK Office of Rail and Road (ORR), only 38 percent of Britain’s railways are electrified. Investments in electrified rail fleet infrastructure is critical to meet UK Network Rail’s target of a net zero railway by 2050.
The ATE trains replaced diesel trains and are transporting more than 21m passengers every year, equivalent to over 13m car rides if passengers were to use their cars as an alternative mode of transportation.
Case study - He Dreiht offshore wind farm
Storebrand Infrastructure Fund has, via the partnership with AIP, invested EUR 95 in He Dreiht offshore wind farm in Germany.
Investment case
He Dreiht is an investment into a 960 MW construction-ready offshore wind farm in the German North Sea. The wind farm is expected to be fully operational by year end 2025.
The asset is characterized by a solid owners, including Norges Bank, Allianz Capital Partner, AIP and the experienced German utility EnbW, and a strong contractual set-up. Long-term contracts are in place for the power produced as well as operation and maintenance services. EnbW is a key partner, having developed the asset and being responsible for construction, operation and long-term offtake.
Sustainability impact
With annual production of c. 5.3 TWh, He Dreiht will provide clean, renewable energy to more than 1.1m German households, offsetting the equivalent of c. 2.7 million tons of CO2. The project will contribute substantially to the reduction of greenhouse gas emissions and achievement of carbon neutrality in Europe by 2050.
In addition, He Dreiht plays an important role in enhancing Europe’s energy security and reducing the regions dependency on imported, fossil fuels.
Powered by experience
We believe that relevant skills and a proven track record are essential for success when investing in infrastructure. To ensure this from day one, a strategic partnership model for capital deployment was adopted. In this model, our strategic partners support our in-house investment team in deal sourcing, the due diligence process and handle the day-to-day management of assets. Via the partnership approach, we leverage on our partners’ expertise and gain access to exciting investment opportunities in North America and Europe.
The team is supported by an internal advisory board consisting of experienced managers across areas of asset management within the Storebrand Group.
AIP Management, a Danish infrastructure manager, has been our main strategic partner for infrastructure investments since 2021. To secure strong alignment, Storebrand acquired a small ownership stake in the management company in 2021. In June 2024, Storebrand increased its ownership in AIP and will become majority owner (60%) when the transaction closes. The acquisition will strengthen Storebrand’s position as a Nordic investment partner and leader within sustainable investment.
Storebrand Infrastructure
Investment Team
Jo W. Gullhaugen
Head of Infrastructure
Ann-Marie H. Kulvik
Investment Manager,
Infrastructure
Dennis B. Reichhardt
Investment Manager,
Infrastructure
AIP Management
AIP is experienced investment manager, with a strong Nordic heritage, driving the energy transition through sustainable investments that deliver stable returns. AIP has since 2012 invested more than EUR 7 billion in European and North American infrastructure. AIP has a team of more than 90 professionals with extensive expertise in investments and energy working from Copenhagen, London, Madrid, and New York.
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
Latest insights
08.10.2024
Storebrand Strengthens Renewable Energy Investments with Acquisition of French Energy Company
26.06.2024
Storebrand increases its ownership in Danish infrastructure fund manager AIP Management
23.03.2024
Storebrand Infrastructure Fund invests in Germany's largest planned offshore wind farm
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