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Equitix

PRI reporting framework 2020

You are in Organisational Overview » Basic information

Basic information

OO 01. Signatory category and services

01.1. Select the services and funds you offer

Select the services and funds you offer
% of asset under management (AUM) in ranges
Fund management
Fund of funds, manager of managers, sub-advised products
Other
Total 100%

Further options (may be selected in addition to the above)

01.2. Additional information. [Optional]

Equitix is a leading investor, developer and long-term fund manager of core infrastructure and energy efficiency assets in the United Kingdom and Europe. As of 31st March 2020, it has just over £6 billion under management. 
 


OO 02. Headquarters and operational countries

02.1. Select the location of your organisation’s headquarters.

United Kingdom

02.2. Indicate the number of countries in which you have offices (including your headquarters).

02.3. Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

130 FTE

02.4. Additional information. [Optional]

Equitix is managed by six senior investment professionals who collectively have 120+ years of experience focused on the public sector and have built strong relationships with the leading market players. Two of Equitix’s original founders, Geoff Jackson and Hugh Crossley together
with Jonathan Smith, Siôn Jones, Peter Roughton and Achal Bhuwania are long term infrastructure industry practitioners who have been key to
Equitix’s successful track record of bidding, securing, developing and operating more than 280 infrastructure projects under the Equitix brand.

The Senior Management team has been actively involved in infrastructure projects since the inception of the infrastructure market in the UK. They
have each previously held senior managerial positions within some of the largest global infrastructure institutions including Skanska Infrastructure Development, John Laing, Bovis Lend Lease and King Sturge and Balfour Beatty.

The broader Equitix platform employs a team of over 120 infrastructure specialists organised along five functional lines: primary bidding and development, deal origination, finance, asset management and support functions. The Team comprises professionals from a variety of backgrounds
with extensive experience in construction, programme management, operations and asset management, banking and finance, property, legal and the public sector thereby combining the skillsets necessary to operate across the lifecycle of a core infrastructure project. Equitix believes hat all the critical skillsets for infrastructure fund management should exist in-house, to ensure that all aspects are considered when originating, due diligencing, acquiring and operating an asset.

As Equitix has moved into European geographies, it has hired a number of European nationals to support its investment strategy in the regions and opened several offices on the continent including Northern Italy and Frankfurt and an office in Madrid which is due to open in late 2020. 


OO 03. Subsidiaries that are separate PRI signatories

03.1. Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right.

03.3. Additional information. [Optional]


Equitix has a wholly-owned subsidiary that is a management services company: Equitix Management Services Limited (“EMSL”) which was established in October 2014 and operates from three offices in London, Manchester and Scotland. It specialises in the financial and operational management of infrastructure projects.


OO 04. Reporting year and AUM

04.1. Indicate the year end date for your reporting year.

31/03/2020

04.2. Indicate your total AUM at the end of your reporting year.

Include the AUM of subsidiaries, but exclude advisory/execution only assets, and exclude the assets of your PRI signatory subsidiaries that you have chosen not to report on in OO 03.2
Total AUM
trillions billions millions thousands hundreds
Currency
Assets in USD
trillions billions millions thousands hundreds

04.4. Indicate the assets which are subject to an execution and/or advisory approach. Provide this figure based on the end of your reporting year

04.5. Additional information. [Optional]


Since its inception in 2007, Equitix has experienced steady and consistent growth in its Assets Under Management (AUM), which has been matched by the growth in its team. Its first commingled Fund - Equitix Fund I - was raised in 2008 and closed with £104 million, and most recently, its sixth Fund - Equitix Fund VI - was launched with a target of £1 billion and a hard cap of £1.5 billion. The size of the commingled funds has increased steadily (Equitix Fund II £333m, Equitix Fund III £505m, Equitix Fund IV £750m and Equitix Fund V £1 billion) and Equitix has also raised a considerable amount of co-investment capital, allowing investors to invest directly into larger assets and other segregated strategies. 


OO 06. How would you like to disclose your asset class mix

06.1. Select how you would like to disclose your asset class mix.

Internally managed (%)
Externally managed (%)

 

Listed equity 0 0 0 0
Fixed income 0 0 0 0
Private equity 0 0 0 0
Property 0 0 0 0
Infrastructure >50% 100 0 0
Commodities 0 0 0 0
Hedge funds 0 0 0 0
Fund of hedge funds 0 0 0 0
Forestry 0 0 0 0
Farmland 0 0 0 0
Inclusive finance 0 0 0 0
Cash 0 0 0 0
Money market instruments 0 0 0 0
Other (1), specify 0 0 0 0
Other (2), specify 0 0 0 0

06.2. Publish asset class mix as per attached image [Optional].

06.3. Indicate whether your organisation has any off-balance sheet assets [Optional].

06.5. Indicate whether your organisation uses fiduciary managers.

06.6. Provide contextual information on your AUM asset class split. [Optional]

Equitix seeks to invest into infrastructure projects with strong earning prospects whose impact on society and the environment aligns with its core ESG values. The assets that Equitix typically invests in exhibit the following characteristics:

The ability to deliver stable income over the long term
Benefiting from strong contractual agreements with robust counterparties
Providing essential or critical services to society
Fundamental to a country’s long-term economic growth
Benefiting from a monopolistic position due to a combination of the legal, regulatory or geographical environment in which they operate

Over the course of its 13-year track record, Equitix has found that the following sectors usually generate the most compelling investment opportunities in line with this philosophy:

Social Infrastructure – Education, healthcare, social housing, university accommodation and government accommodation
Transportation – Road and highways maintenance projects, rail projects and rolling stock
Utilities Infrastructure – Offshore transmission, onshore transmission, waste and water
Energy from Waste – Residential and commercial waste incineration, gasification, biomass
Renewable Energy generation – Solar, onshore wind, offshore wind, hydroelectric energy
Telecommunications – Telecommunication towers, broadband and fibre initiatives

Equitix’s traditional focus has been small and mid-cap assets – its average investment size is approximately £16m – and it therefore avoids the highly competitive ‘large or mega cap’ auction processes. This focus on smaller investments means it captures an inherent market inefficiency, these assets often being difficult to originate.

As an active asset manager, Equitix looks to improve returns from the base case returns at acquisition. Core infrastructure investment is traditionally more focused on yield rather than capital gain and the former will form an important part of the strategy. However Equitix has traditionally looked to lift returns where possible.

With over 125 employees working across a range of sectors, it has one of the largest teams of any UK-focused infrastructure fund manager. Sector specialists are employed who bring an in-depth understanding of each infrastructure sector to the investment process. Equitix also employs individuals with a range of skillsets to ensure all investment risks and opportunities are considered. For example, as well as the traditional legal and financial expertise required in investment management, it has professional engineers and infrastructure professionals within its team. Furthermore, the investments Equitix makes are often both technically or legally complex, and therefore difficult to source and manage. They may also have asset-specific risks (such as greenfield risk) that require more resource and time. This creates substantial barriers to entry and further market inefficiencies that Equitix looks to exploit to the benefit of its investors.


OO 07. Fixed income AUM breakdown (Not Applicable)


OO 08. Segregated mandates or pooled funds (Not Applicable)


OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

100 Developed Markets
0 Emerging Markets
0 Frontier Markets
0 Other Markets
Total 100% 100%

09.2. Additional information. [Optional]

Since inception, Equitix has been steadily building a strong reputation as a leading equity investor and consortium partner in the UK core infrastructure market. It’s attractive rate of capital deployment and prudent expansion into emerging sectors of interest, such as energy
from waste, UK rolling stock and brownfield renewable energy projects, demonstrates its ability to consistently source and execute on a pipeline of compelling deals, and its versatility and foresight in entering new markets.

Although the UK remains its primary focus, in October 2018, Equitix launched its first Euro denominated strategy - Equitix Euro Fund I - focused solely on making investments into core infrastructure assets on the European mainland. Following the Brexit Referendum vote, the decision to launch a dedicated European Fund was made after engagement with Equitix investors who expressed a preference for the choice of two geographically distinct Funds. Thus affording them the ability to allocate to various jurisdictions and currencies according to their own individual needs. Prior to this, Equitix Fund III and IV allocated a percentage (typically less than 20%) of their strategy to investment in central European jurisdictions. Whereas, Equitix Fund V has invested in European infrastructure through a 10% commitment to the Euro Fund.

Across both the UK and European investments, Equitix continues to strengthen its demonstrable track record of originating transactions through its strong network of industry partners. To date, approximately 63% of assets have been acquired through word of mouth or recommendation, avoiding the need for competitive auctions.


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