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 2019, for the third consecutive year, Arcus European Infrastructure Fund 1 (‘AEIF1’) was ranked first of the European Infrastructure Funds (against 20 peers) in the GRESB Infrastructure Assessment, an industry-wide ESG benchmark.

For the underlying Arcus investee companies, the highlights in 2019 include the results of the Alpha Trains, Brisa and GTC assessments which came first in Rail Companies Europe, Road Companies Globally/Europe and European Motorways respectively.

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

These strong results also meant AEIF1 was ranked first in diversified infrastructure funds globally (against 74 peers), which is an excellent result and recognition of our strong ESG performance. Overall, Arcus was named the Global Diversified Fund and European Fund Sector leader in the 2019 GRESB Infrastructure Assessment.

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.

2019 awards

AEIF1

1st out of 20

Non-listed diversified European infrastructure funds

AEIF1

1st out of 74

Global Non-listed diversified infrastructure funds

Brisa

1st out of 6

Global and European Road Companies

Alpha Trains

1st out of 6

European Rail Companies

GTC

1st out of 11

European Motorways