Real Assets

Real Assets belong to the asset class “Alternative Investments” and are real, tangible assets, you can watch and touch, such as real estate or long-term infrastructure, energy & natural resources and value companies.

These types of assets are stable in value and generate long-term stable cash flows that bring at least partial protection against inflation. In particular, infrastructure and renewable energy, usually bring another positive aspect to your portfolio: sustainability. Sustainability in the investment area – this issue is becoming increasingly important, especially among European investors.

For years, alternative investments are made repeatedly. What are the requirements?

• Yield
• Volatillity
• Overseeable (political) risk
• Liquidity
• Sustainability

We are focusing in this area on the following assets.

• Infrastructure
• Real Estate
• natural resources & energy

• Infrastructure in Europe was originally built privately and for profit (for example, railways), it was the end of the 19th century. However, mostly nationalized
• 1950-1985 widespread use and expansion – governmental input for economic growth
• from 1990 so-called “unbundling” of infrastructure by the state (partial privatization and liberalization)
• unbundling: Separation example of power producer and electricity supplier or division of ÖBB in infrastructure and people / freight.
• since 2000 and up to date further privatization, but also remunicipalisation
• division of responsibilities between public and private actors (current feed, PPP models in road construction etc.)
• massive funding shortfall at state actors

Infrastructure

Interest from institutional investors in alternative investments and infrastructure increases significantly. Investments in infrastructure provide safe and predictable cash flows and high value retention. In the next few years huge investments in infrastructure are needed in Europe. Who will finance all this? Banks, which previously held the finance function, excrete increased. Alternatives must and will establish themselves.

The share of infrastructure investments at German investors is still below 1%. This could significantly increase in the future. Very few investors are able to directly participate in infrastructure investments. Securities, funds or similar vehicles therefore offer an attractive way to encourage the potential of the asset class and to meet regulatory requirements.

In the field of infrastructure you can invest in different instruments (equity, mezzanine capital, debt). The features of the instrument differs massively. Investments in infrastructure (equity and debt) can therefore be done in a portfolio, as well as other alternative investments, increasing returns and simultaneously reduce the risk of a portfolio.

Technichal infrastructure

• Power supply, electric power, gas supply, district heating, gas station network
• Communication: Broadcasting, Internet, fixed-line telephony, mobile
• Material supply & disposal: waste disposal, waste water, valuable material recovery, drinking water
• Transport infrastructure: Public transport by inland waterways, maritime transport, railways, public transport, air transport, airports, roads, navigation radio transmitter for air and sea vehicles; and private transport: roads, cycle paths, cycle routes, etc.

Social infrastructure

• Education system, educational institutions with libraries, schools, universities, colleges, research institutions, …
• Services with child care facilities, nursing services, …
• Health system with hospitals, emergency services
• Cultural facilities with exhibition spaces, libraries, museums, …
• Public safety: civil protection, police, defense, …

Currently the integration of the capital market and (institutional) investors takes place in the financing of infrastructure investments. We provide the link between the real economy and finance.