Target Sectors
• Power
• Utilities
• Oil and gas
• Transport infrastructure
• Logistics equipment
Target Transaction Size
• $300 million - $5 billion
Deal Criteria
• High asset value
• High quality earnings
• Low business risk
• Economic resilience
• High barriers to entry
• Often regulated
environments
Geographic Criteria
• United States
• Canada
• Mexico
• UK and Western Europe
• Eastern Europe
• Middle East
• India
• China
• South East Asia
INVESTMENT STRATEGY
Overview Arcapita’s asset-based investment team focuses on infrastructure investment opportunities which generate high quality cash flow and have lower business risk characteristics. Investor returns are derived from the actual cash flow produced
by a single asset or a group of tangible assets during the investment
holding period, and eventual sale through multiple exit strategies.
The intrinsic asset value – which provides enhanced downside
risk protection – is fundamental to the investment thesis
in these transactions.
Sectors particularly well suited to this type of investment include
asset-rich industries such as power, utilities, oil and gas, transportation,
infrastructure and other regulated industries.
Diversified Yield The upgrade and expansion of national infrastructure is at the
top of the political agenda for many governments in both the developed
and developing economies. Governments’ drive to update and
expand national infrastructure without burdening the exchequer will
require increasing private sector participation. The investment
success factors for these transactions are political commitment
by national governments, transparent and stable regulatory frameworks,
established privatization and liberalization schemes and credible
partners and operators. By concentrating on the sectors identified
above, most of which are typically resilient to economic cyclicality,
Arcapita aims to offer its investors the opportunity to build a
diversified portfolio of cash yielding investments to complement
its corporate and real estate investment products.
Arcapita will continue with its strategy of focusing on opportunities
in the more developed markets such as North America and Europe,
which offer a supply of the type of assets identified above, while
selectively pursuing transactions in other markets.