Download the PDF
As infrastructure continues to evolve as an asset class, the catalysts for value creation have also begun to shift in lockstep against a backdrop of significant shifts in credit, debt and economic cycles.
Over the past decade, infrastructure has benefited from strong macroeconomic fundamentals and megatrends that have provided growth and resilience for investment portfolios. As we look ahead, these tailwinds will invariably change course, amplifying the importance of operational value creation in delivering strong investment outcomes underpinned by multi-decade active asset management expertise and discipline.
In our Infrastructure Investment Insight paper, we explore Operational Value Creation as part of our SOLID framework. SOLID represents the aspects of Sector-centricity, Operational value creation, Long-term thematics, Inflation and interest rate protection and Deep diversification. QIC Infrastructure expects the next generation of operational value creation to be underpinned by three central principles: Organisation, Optimisation and Orientation.
- Organisation includes the people, processes, systems, and governance within infrastructure businesses that promote operating efficiency and long-term sustainable value.
- Optimisation focuses on value creation as a result of lifecycle planning, continuous improvement, complexity reduction, growth projects, innovation, modernisation, and structural reviews.
- Orientation recalibrates assets to identify the highest value activities and to strategically steer the investments via a prudent governance structure.