ERAFP awards an Infrastructure mandate

Paris, 10 January 2017 – Under its Investment Policy, which aims notably, for the purposes of diversification, to use some of its long-term savings to develop sustainable assets that drive economic development and the energy transition and are useful to future generations, the French public service additional pension scheme (ERAFP) has recently awarded an Infrastructure portfolio management mandate.

In January 2016, ERAFP launched a restricted call for tenders to select managers to invest in unlisted infrastructure assets. Following the selection process, ERAFP has decided to award the asset management mandate to Ardian France SA.

ERAFP wishes to use this mandate to invest in contractors whose purpose is notably to finance, build, restructure, operate or operationally manage vital public infrastructures. These infrastructures are or will be built essentially in EU countries.

The manager of the ERAFP’s dedicated fund will seek to generate a regular return and to maximise the mandate’s long-term performance, with a moderate risk approach that will result notably in minimising the asset class’ specific risks.

To do this, the manager will be required to build a mixed greenfield and brownfield portfolio mainly through primary investments in new infrastructure funds or secondary investments in existing infrastructure funds and, to a lesser degree, through direct investments and/or co-investments in contractors.

By way of indication, the amount initially awarded under this mandate will be around €150 million.

The length of the initial mandate is ten years; ERAFP may extend the contract for two successive two-year periods.