The scale of global infrastructure investment demand is enormous, and there is a growing need to replace and expand international infrastructure including all parts of the
energy supply chain and a wide array of public services such as roads, railways, airports, and communications networks. Initiatives in these areas have become more difficult
due to a reduction in traditional public funding and weakened economic conditions in many regions of the world. These resource issues have created a heightened need for
experienced private capital.
We are committed to helping to meet this resource imbalance by investing in infrastructure assets on a global basis. Our goal is to achieve returns through the acquisition
and operational improvement of infrastructure assets, which are important to the functioning of regional and local economies. We look to use these investments to generate
current income and capital appreciation for investors in our funds.
Our strategy is to seek infrastructure investments with limited downside risk. We seek to drive value creation through distinctive sourcing, deep operational engagement,
and active stakeholder management. We believe this strategy leads to value-added returns for our investors.
Singapore Summit Capital has worked closely with its investors and advisors to maximize fund structures for investing in infrastructure project debt. We offer investors
consolidated investment funds and managed accounts for investing in this important asset class.
Our pooled vehicles comply with the latest fund regulations and jurisdictional investment ordinances
Our funds and managed accounts utilize the infrastructure, asset sourcing and investment management strengths of Singapore Summit Capital.
We offer investors easy access to infrastructure debt and provide a unique investment opportunity through closed-ended or open-ended funds,
a rated note structure or an LP interest.
Singapore Summit Capital uses a proprietary strategy to meet investor risk-return objectives and deliver attractive yields with low correlation
to other asset types. Capital is deployed in a short period of time, reducing drag on returns because of a slow ramp-up that can be characteristic
of infrastructure investment.
Social infrastructure assets, which include hospitals, schools and education infrastructure, tend to generate extremely stable long-term cash flows
on the basis that they are provided on an availability basis.
Regulated utilities are businesses which provide essential services such as water supply, sewerage, electricity or other types of energy.
These types of utilities tend to be regulated across most jurisdictions because of their essential importance to daily commerce and life and
pricing is often set by the regulator. Performance of regulated utilities tends to be relatively resilient, regardless of the ups and downs of
the economy, due to the essential nature of the services they provide.
Transport infrastructure includes toll roads, and is classed as a patronage asset. This means its performance depends on how much the service is used.
Patronage can be impacted positively and negatively by many factors, so the risk associated with transport infrastructure tends to be higher compared
to that of regulated utilities and social infrastructure. For this reason, investors expect a higher relative return for investing in transport infrastructure.
Ports and airports
Ports and airports are predominantly patronage assets. The more that people use them, the better they perform. Ports and airports by their nature are linked
to the strength of the economy. Strong trade and a strong economy translates into greater usage and greater revenue. Of course, when the economy falters and
contracts, these assets experience contraction in usageand ultimately revenue. So for ports and airports, investors expect a higher return because of this
higher patronage risk, and the greater volatility in earnings this implies.
Communications infrastructure, such as telecommunications and towers, mixes availability with patronage in a technology and communications environment where
usage patterns can vary. Communications infrastructure is exposed to greater competition than other patronage assets such as ports and airports. Moreover,
communications infrastructure dates rapidly compared to other infrastructure because of the pace at which technology develops and changes. For this reason,
there are additional risks that investors require greater returns to cover.