Infrastructure

Closely connected for
enhanced outcomes

At a glance

0
First direct equity investment
$ 0 bn
Deployed since 2011
0
Limited Partners

Source: Federated Hermes as at 31 March 2025.

The value of investments and income from them may go down as well as up, and you may not get back the original amount invested.

Ports & Logistics: Associated British Ports

Perry Noble
Quote

Our infrastructure platform combines proactive investment management with project development expertise. The combination maximises the opportunity to earn attractive risk adjusted returns across the full investment life cycle: development, construction, operations, and realisation.

Why Federated Hermes Infrastructure?

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Investee company engagement

We are an active manager that secures governance rights consistent with the nature and scale of the investment that ranges from minority positions in large scale utility businesses with established management teams, to controlling interests in earlier stage project companies developing new infrastructure. This usually includes representation on boards and board committees. Formal governance rights are augmented by investment in building close relationships with management teams, co-shareholders and other stakeholders. The combination allows us to make targeted interventions to guide company activity.

Deep local knowledge

We specialise in investing in predominantly UK assets on behalf of UK pension funds. This distinctive position in the market has allowed us to acquire a deep-rooted understanding of the political and regulatory environment in which we operate. By leveraging this highly localised approach, we have developed strong, longstanding relationships across the sector.

Leveraging sustainability expertise

Drawing on our firm’s long-established sustainability expertise, we have developed proprietary assessment and reporting tools that allow us to integrate sustainability into all aspects of our infrastructure investments. We identify risks at the outset of the investment process and monitor progress throughout the investment life cycle. We are also at the vanguard of sustainability engagement in the industry by influencing company activity at board and committee level.

Flexible investment structure

Our dedicated asset class offering extends to co-mingled funds, segregated and managed accounts across a range of infrastructure opportunities.

How we invest

We primarily pursue two investment strategies:

Core Strategy/Core+

Our flagship fund has a single diversified core/core+ strategy. The fund seeks to invest in stable infrastructure businesses characterised by lower volatility and predictably high-single digit returns (a large proportion of which is derived from cash dividends). These investments are largely uncorrelated to GDP and can provide a measure of inflation protection.

Among the various means by which we manage risk across our investments, influencing and engaging with company leaderships remains one of the most effective. By taking long-term, governance-level positions in companies, we are able to engage with management teams and exert influence in coalition with fellow shareholders. From this long-term investor vantage point, we can evaluate risk holistically, seeking to deliver tangible change.

Next generation Infrastructure

The acquisition of a majority interest in Rivington Energy (Management) Limited adds specialised project development expertise to existing institutional investment and asset management capabilities.

The combination will provide investors with access to a pipeline of proprietary investment opportunities principally related to the evolving energy transition landscape with an increasing focus on partnering with industrial and commercial businesses to undertake projects that increase energy efficiency (and reduce cost), reduce carbon emissions and provide opportunities for regeneration and adaptation of existing infrastructure.

Who we are

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TCFD Report 2025

We believe that the risks and opportunities posed by climate change are crucial factors that can impact investment performance. Read our TCFD Report to find out how we integrate climate analysis throughout the investment process to manage these impacts for our investors.

See our other Private Markets asset classes

Closely connected for enhanced outcomes

Heritage and track record​

We have been connecting clients to Private Markets opportunities since our first real estate investment in 1983.​

Client-centric investing​

We’re passionate about connecting clients to innovative investment solutions that seek to deliver financial, as well as social and environmental returns.​

Access to high-quality investment opportunities​

Our 40+ year track record is driven by a mindset of building and nurturing long lasting relationships that deliver outcomes.​

Enhanced outcomes and portfolio diversification

We believe our experience, deep networks and partnership approach enable us to get clients closer to the opportunities in Private Markets – because we are.

Uncover the real potential
in Private Markets

Connect with us to find out more:

Jakob Nilsson

Executive Director, Head of Private Markets Sales ex US