Credit: Funds SA LinkedIn page https://www.linkedin.com/pulse/how-funds-sa-turning-global-megatrends-long-term-value-funds-sa-xdh8c/

At Funds SA, we don’t wait for change - we invest in it. Our early investment in Cyan Renewables with Seraya Partners, committing ~A$120m in July 2024, is a clear example of how we’re putting our infrastructure strategy into action. Cyan, based in Singapore, is an industry leader, providing transportation services for offshore wind projects and other parts of the maritime economy. Cyan expanded into the Australian market through the acquisition of MMA Offshore in July 2024.

We saw an opportunity to be early and bold in a sector that’s rapidly changing. Offshore wind is an increasingly important contributor to the energy transition as countries race to decarbonise. Cyan is positioned as an early-mover in the European and Asia-Pacific region, operating in a niche market with high barriers to entry, such as long development timelines.

We’re drawn to investments like Cyan because they sit at the crossroads of multiple long-term trends. First, in the energy space including the decommissioning of legacy oil and gas infrastructure, the build-out of renewable energy, and the emergence of new markets like offshore hydrogen and carbon capture. Second, more broadly in the offshore support vessel market, where there is growing new demand across marine protection, government services, and defence.

Our strategy is clear - we favour assets that contribute to or benefit from the energy transition and the digital economy whilst maintaining diversified exposure to stable assets to deliver the overall core infrastructure return objectives. We focus on sectors and assets aligned with secular change with growing demand trends from demographic shifts, evolving policy, and geopolitical change.

We also keep a close eye on regulatory environments. While regulated assets remain a core part of infrastructure portfolios, we’re mindful of emerging risks is some regions. We prefer electricity transmission over distribution, given its alignment with the buildout of renewable energy integration with the grid. We favour jurisdictions with stable regulatory regimes and assets backed by strong demand and customer willingness to pay.

Our portfolio construction is intentional - generating attractive returns from durable infrastructure themes whilst managing risk. We aim to build meaningful positions in assets of national importance through co-investments with trusted managers and add new partners selectively. This gives us control over portfolio composition and allows us to express high-conviction views on global infrastructure trends. Our portfolio construction blends core infrastructure assets that are already established and exposure to non-core assets that are developing. By blending core and non-core infrastructure exposures, we aim to deliver strong, risk-adjusted returns.

In a world of accelerating change, we remain committed to investing in the future. Responsibly. Strategically. And with purpose.

Cameron Sinclair

Deputy Chief Investment Officer

Credit: Funds SA LinkedIn page https://www.linkedin.com/pulse/how-funds-sa-turning-global-megatrends-long-term-value-funds-sa-xdh8c/