Investment of $6 trillion required for European infrastructure, with mid-cap strategy emphasized as crucial for long-term durability by DWS.
DWS, a leading global investment firm, has announced a strategic focus on the European infrastructure market, targeting mid-cap assets valued under €1 billion with equity tickets between €200 million and €600 million. This approach aligns with the firm's goal of capturing growth and stability in the infrastructure sector.
The pan-European strategy adopted by DWS encompasses investments across sectors that are critical to Europe’s infrastructure overhaul. Key sectors include renewable power projects, hydrogen networks, energy efficiency developers, data centers, cruise port terminals, and train stations. This focus on sectors such as the energy transition, digital infrastructure, and public transport reflects Europe’s estimated $6 trillion infrastructure investment need to modernize roads, ports, energy grids, data centers, and digital connectivity by 2030.
DWS aims to acquire core-plus mid-cap assets and develop them into core assets suitable for large-cap exits. This strategy combines buying stable mid-cap assets with growth potential and value creation to achieve attractive returns at scale.
In addition to the mid-cap strategy, DWS also operates a complementary small-cap strategy, focusing on early-stage sustainable infrastructure with the goal of growing into mid-cap core-plus assets at exit.
Investing in European infrastructure offers several advantages, according to DWS. It provides downside protection on capital and resilience through recent macroeconomic changes. Moreover, the firm prioritises sectors aligned with structural trends such as energy transition, digitalisation, and public transport.
Harold d'Hauteville, Head of Infrastructure Equity Europe at DWS, considers private capital a necessity for infrastructure investment in Europe. He believes that Europe needs to reduce its dependency on US tech, Asian manufacturing, and Russian gas imports.
Europe's approach to infrastructure is dual-pronged, with incentives for renewable energy producers and objectives for energy efficiency and renewable energy share for consumers. Since 2019, 90% of all transactions in Europe fall within the mid-cap segment targeted by DWS.
DWS has taken a pan-European approach, with recent activity in Switzerland, France, and across the Mediterranean. The firm invites readers to contact them for any missed important news at their website.
With a cohesive and durable policy environment for infrastructure investment compared to regions like the US, Europe presents an attractive opportunity for investors seeking growth and stability in the infrastructure sector.
- DWS, with its focus on the European infrastructure market, is targeting mid-cap assets, valued under €1 billion, for investment, with equity tickets between €200 million and €600 million.
- The pan-European strategy of DWS includes investments in sectors such as renewable power projects, hydrogen networks, data centers, and train stations, among others, that are crucial for Europe’s infrastructure overhaul.
- DWS aims to acquire core-plus mid-cap assets and develop them into core assets suitable for large-cap exits, combining buying stable mid-cap assets with growth potential and value creation to achieve attractive returns at scale.
- In addition to the mid-cap strategy, DWS also operates a complementary small-cap strategy, focusing on early-stage sustainable infrastructure with the goal of growing into mid-cap core-plus assets at exit.
- Private capital, according to Harold d'Hauteville, Head of Infrastructure Equity Europe at DWS, is necessary for infrastructure investment in Europe, as Europe needs to reduce its dependency on US tech, Asian manufacturing, and Russian gas imports.
- The firm believes that investing in European infrastructure offers several advantages, including downside protection on capital, resilience through recent macroeconomic changes, and priority on sectors aligned with structural trends such as energy transition, digitalisation, and public transport.
