Infrastructure Debt Fund
Fairtree Infrastructure Debt Fund is a South African investment fund, focused on
investing in South African renewable energy infrastructure.
Debt is the largest investment opportunity in the South African power sector.
What is the Fairtree Infrastructure Debt Fund?
Fairtree Infrastructure Debt Fund is a South African investment fund, focused on investing in South African renewable energy infrastructure. This investment opportunity of infrastructure funding and financing solutions has an investment impact aimed to support the sustainability of South Africa.
The fund is structured as a Limited Partnership under the laws of South Africa with Fairtree Asset Management (Pty) Ltd as the infrastructure fund investment managers. Fairtree has over ZAR 132 billion assets under management and has operations in Southern Africa, Europe, and the UK.
Benefits of investing in infrastructure through Private Debt
01
Provides investors with access to high-demand capital investment in South African energy infrastructure projects.
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Enhances investor portfolio diversification – low correlation to economic cycles that affect conventional investment portfolios.
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Low volatility and income-based returns with an attractive CPI-linked pay-off profile for investors.
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Inflation protection with reliable cashflows expected to deliver above inflation returns.
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High ESG score and impact of clean energy projects.
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Ease of contribution through retirement savings. Regulation 28 amendments allow for greater infrastructure investment (45% limit).
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Securing sustainable investing [KK1] through a sustainable energy supply to combat Eskom’s aging and dirty fleet of power plants.
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Investors contribute toward driving economic growth and job creation. Generating investment impact above and beyond investment returns.
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Sustainable infrastructure strategy contributing the United Nations Sustainable Development Goals.
Purpose-Driven Sustainable Development Goals
The Fairtree Infrastructure Debt Fund’s sustainable infrastructure strategy contributes to the United Nations Sustainable Development Goals.
The Fairtree Infrastructure Debt Fund
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Our investment solutions are strategically designed to meet our clients’ investment goals and aspirations, placing them on the path to a secure financial future.
What makes Fairtree unique?
01
A team of experienced professionals, who have extensive technical, infrastructure and investment management experience and deep a wealth of networks in South Africa.
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Unique deal pipeline of partnerships with leading developers and lenders in
infrastructure financing
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Platform to scale through capital allocation in a high growth market.
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ESG impact through sustainable investing imbedded in underlying projects.
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Stable, consistent, and diversified returns with low costs.
Investing in the South African power sector infrastructure programme provides institutional investors the opportunity to secure an inflation linked, long-term,self-liquidating investment in renewable energy infrastructure. This ability to invest in renewable energy is not readily available in the market.
South African Power Sector
The power sector infrastructure funding programme will require a total of R600 bn ($42 bn) in equity and debt capital by 2030.
The R450 bn ($32bn) of the capital requirement will be in the form of long-term, non-recourse senior debt.
Currently, there is very limited opportunity for institutional investors to invest in project equity – mainly in BEE funds. This creates a significant opportunity to secure an inflation-linked, long-term, self-liquidating investment. Private debt investing brings about investment diversification to an investor’s overall portfolio which aims to enhance investor returns.