Arcus Infrastructure Partners LLP

Insight Investing

Our strategic approach starts with a thorough analysis of the long-term trends affecting our core European markets:

Decarbonisation

of the increase in total electricity generation by 2040 will be renewable

Decarbonisation driving transportation and heating energy sources

Source: 2018 IEA World Energy Outlook

Changing Demographics

of population will be non-working dependents by 2050

Demographic shifts impacting consumption, logistics and transportation

Source: Eurostat, Aug 2020

Data Explosion

expected increase in data generation by 2020

Ubiquitous connectivity driving disruption, efficiency and disintermediation

Source: IDC, 2019

to shape our strategy and define investment sectors - the infrastructure supporting the technology of tomorrow

Focused asset selection

Our dedicated sector teams use our network of European offices and wider contacts to identify unique investment opportunities and angles in our chosen sectors.

We have a clear set of criteria through which we filter these opportunities to identify investments that sit within the Arcus sweetspot.

Focused asset selection

Our dedicated sector teams use our network of European offices and wider contacts to identify unique investment opportunities and angles in our chosen sectors.

We have a clear set of criteria through which we filter these opportunities to identify investments that sit within the Arcus sweetspot.

Our investment strategy focuses on three carefully chosen sectors:

Focused asset selection

Our dedicated sector teams use our network of European offices and wider contacts to identify unique investment opportunities and angles in our chosen sectors.

We have a clear set of criteria through which we filter these opportunities to identify investments that sit within the Arcus sweetspot.

  • €100 – €250m equity

Focused asset selection

Our dedicated sector teams use our network of European offices and wider contacts to identify unique investment opportunities and angles in our chosen sectors.

We have a clear set of criteria through which we filter these opportunities to identify investments that sit within the Arcus sweetspot.

  • Significant influence and partnership approach.

Focused asset selection

Our dedicated sector teams use our network of European offices and wider contacts to identify unique investment opportunities and angles in our chosen sectors.

We have a clear set of criteria through which we filter these opportunities to identify investments that sit within the Arcus sweetspot.

  • Transitional assets
  • Roll-up strategies
  • Expansion & development opportunities

Focused asset selection

Our dedicated sector teams use our network of European offices and wider contacts to identify unique investment opportunities and angles in our chosen sectors.

We have a clear set of criteria through which we filter these opportunities to identify investments that sit within the Arcus sweetspot.

  • ESG initial screening and full due diligence.
  • ESG risk analysis and mitigation plans.
  • Third party independent expert consultants.

Insight investing

Our strategic approach starts with a thorough analysis of the long-term trends at play in our core European markets.

Active Asset Management

The Arcus asset management approach is founded on combining dedicated and experienced senior resources with a structured asset management framework and institutionalised, repeatable processes. Arcus has developed a bespoke Asset Management Framework that is systematically applied to all of our investments. It is a practical toolkit based on years of shared experience working with infrastructure businesses through economic cycles.

The Arcus Asset Management teams work in partnership with portfolio company management to add value to its investment.

Asset management framework
Shareholder
Leadership
Management
Excellence
Strategy
& Operations
Finance
& Reporting

Responsible Investing

Arcus constantly strives to improve environmental, social and governance (ESG) standards across our portfolio companies. Arcus is a signatory to the UNPRI, the UK Stewardship Code and UN Global Compact (“UNGC”) as well as a member of the Global ESG Benchmark for Real Assets (GRESB).

In 2020, for the fourth consecutive year, Arcus European Infrastructure Fund 1 (‘AEIF1’) was ranked first of the European Diversified Infrastructure Funds (against 23 peers) in the GRESB Infrastructure Assessment, an industry-wide ESG benchmark.  AEIF1 scored 95 out of 100 possible points (compared to 87/100 in 2019). The fund was also named Global Diversified Fund Sector Leader.

Arcus’ most recently raised fund, Arcus European Infrastructure Fund 2 (‘AEIF2′), with smaller and less mature assets, showed significant improvement in 2020, with 86 out of 100 points (compared to 62/100 in 2019) and ranked 3rd in the European diversified fund peer group.

Additionally,  the Tivana Investor Vehicles (the TDF holding partnerships) ranking first of the 75 infrastructure funds which completed the full GRESB assessment, scoring 96 out of 100 possible points (compared to 77/100 in 2019) while the average GRESB fund score was 65 out of 100. This strong score also meant Tivana has been named GRESB Infrastructure Sector Leader for European Funds and Sector Specific (Non-renewables).

For the underlying Arcus investee companies, the highlights in 2020 include the results of the Brisa, GTC, Swiss4net and TDF assessments which came first in European motorway network, European motorway, Fibre networks and Data transmission/Telecom towers respectively.

Overall, all Arcus assets scored well when benchmarked against their peers and all six reporting assets received a 5-star rating.

We believe that high quality infrastructure is critical to Europe’s future economic growth, as well as its social progression and environmental protection. As an owner and manager of sizable and strategically important businesses, ESG considerations are at the forefront of our thinking in each stage of the investment process.

By continually monitoring and improving ESG factors throughout the investment ownership period, we eliminate risks and create stronger, more sustainable businesses that contribute more to the societies in which they operate and are ultimately more valuable businesses. This virtuous cycle enables us to support the ESG objectives and deliver better returns for the pension plans and investment trusts that form our investor base.

The Arcus ESG policy is available below.

2020 awards

AEIF1

1st out of 23

Non-listed diversified European infrastructure funds

Arcus Tivana Vehicles

1st out of 75

All infrastructure funds

Brisa

1st out of 7

European road networks

TDF

1st out of 34

Data transmission/ Telecoms towers

Swiss4net

1st out of 7

Fibre networks