Energy & Infrastructure

Market view

According to the view of most market participants, the share of renewable energy, as part of the energy make up, will only continue to grow. Furthermore, the increasing demands for energy efficiency are offering attractive perspectives for investors. As a result of NORD/LB’s vast experience in the sector, we are able to gain direct access to the market and as such can develop innovative investment products. From our perspective, the energy market is deeply linked to the infrastructure market, not only topically but also from an investment perspective. We develop individual and portfolio solutions in both areas.

Alternative Asset
Investment Chances

Nearly no other asset class has drawn as much attention among institutional investors in the last couple of years as the renewable energy and the infrastructure sector. There are a number of reasons for this: primarily the lack of alternatives, the tendency for long term contracts, the historical low interest rates, as well as investment sustainability and the high investment volumes possible in the sector. All the issues play a part in the popularity of these asset classes.

The challenges for investors are however equally high. Infrastructure is no homogenous asset class but rather the headline for various individual projects with equally varying risks in the construction and operating phase. The building of a bridge, the construction of an airport or the privatisation of a highway are all categorised within the asset class of infrastructure. The different jurisdictions, national specifics and especially concessionary arrangements all need to be examined as much as the economic and technologic risks of the individual transactions.

These parameters apply equally to the renewable energy market. The coming years will not only see further changes in technical developments, but also regulatory changes and amendments in the tariff regime. The amendment in 2017 of the German Renewable Energy Act (EEG), the implementation of the tender process in the wind energy sector and the deregulation for foreign companies is pressuring many project developers to start their projects before these changes come into force. This should lead to the opening up of many attractive investment opportunities for institutional investors in the upcoming years.

Alongside our advisory function, Caplantic together with its shareholders are currently working towards an investment platform for both debt and equity investments for the asset classes energy and infrastructure.

Track Record

Advisory for an institutional investor in their due diligence process for the financing of a French road network.

Caplantic carried out due diligence and price calculations for a French private equity investment in an infrastructure firm with a volume of EUR 727 million.

Support in a due diligence process for a corporate investor to finance the construction of an offshore wind farm. Volume: EUR 550 million.

Support of a due diligence process for an institutional investor to finance a European railway passenger and logistics company with a volume of EUR 30 million.

The establishment, in cooperation with our shareholders, of an infrastructure fund for institutional investors (e.g. insurance companies). Aim is to take over the portfolio management role of this product.

Expert Opinion

Alternative investments continue to become more attractive in the investment strategy of insurance companies and pension funds, especially due to the above-average returns, the diversification of assets and due to the low interest rates within the bond and Pfandbrief market.

Anette Schmitt
KPMG Partner
Deal Advisory, M&A

Key Figures

Caplantic Portfolio vs. Thomson One AII PE US/EMEA by vintage years

$ Billionen

HDI is a subsidiary of the Talanx Group, which holds 45% of the shares of Caplantic. The Talanx group has extensive experience in the areas industry- and reinsurance as well as financial services. If you want to learn more about this network, the following corporate video will give you a good impression:

HDI Gerling Video

Our Expert for Energy & Infrastructure

Gregor Esenwein

gregor.esenwein@caplantic.com

+49 (0) 40 368 812 563

Market snapshot
  • Continental Europe and the United Kingdom is in the focus of many German investors
  • Offshore wind farms offer attractive risk-return-profiles, in an asset class with a maturing sophistication of its technology
  • Due to high demand, the pressure on the returns of equity and debt investments are increasing