BBIP focuses on providing investment advisory services to investors in core infrastructure operating assets in the utility, energy and transportation sectors. BBIP will also advise on investment in late stage construction projects that when complete, exhibit our core infrastructure requirements.
Investments for which we provide investment advisory services typically exhibit the following characteristics:
Investments for which we provide investment advisory services typically exhibit the following characteristics:
Low volatility; limited correlation with other asset classes
- Operate on a largely uncorrelated cycle to other asset classes
- Diversify even the most mature portfolio
Sustainable long-term, inflation-linked cash-flows
- Predictable long-term cash flows; typically with government backed revenues or capacity based contracts
- Stable, inflation linked revenues
- Low market risk
High operating margins
- Relatively low on-going variable operational and maintenance expenses
Higher barriers to entry
- Large capital requirements limiting the number of natural competitors
- Strong operational experience needed to successfully manage assets
Provision of essential services
- Foundation for basic, irreplaceable public services, sometimes regulated
- Benefit from relatively inelastic demand
- Monopolistic characteristics