Press release of October 15, 2021
SWEN CP innovates with its first ever private-banking focused infrastructure fund: SWEN Exclusive Infrastructures
SWEN Capital Partners, a leading player in sustainable private equity, offers a privileged access to the infrastructure asset class, generally reserved for institutional investors, with the launch of SWEN Exclusive Infrastructures. This SPF (Specialized Professional Fund) is aimed at sophisticated investors, with a minimum subscription commitment of €200k.
SWEN Capital Partners has chosen to expand access to its Infrastructure range, previously reserved for its institutional clients. This asset class is essential to our economy and sits at the nexus of sustainable recovery and growth issues. With infrastructure investment needs estimated at $94 trillion, versus the $79 trillion set to be financed between now and 2040 (source: Global Infrastructure Hub Outlook), the asset class aims to generate regular, long-term returns thanks to a strong deal flow that calls for ever greater financing to address the challenges of sustainable development. To meet these needs, the SWEN Exclusive Infrastructures fund will co-invest alongside the SWEN Infra Multi-Select 4 (SIMS 4) fund, which offers a mainly European investment program in diversified sectors such as telecommunications, sustainable transport, energy transition and social infrastructure.
With over a hundred institutional clients and a unique ecosystem, SWEN Capital Partners offers a platform for innovative and sustainable investment solutions in both multi-strategy and direct investment.
SWEN Capital Partners, supported by the OFI group, has joined forces with Groupe Crystal to design a vehicle that best meets the current expectations of wealthy clients seeking to diversify their assets into private equity in a context favorable to private infrastructure financing. Marketing of this product will initially rely on the Group's financial advisors.
Features and marketing
The fund, which is limited to sophisticated investors, has a target size of €60 million and aims for a net internal rate of return (IRR) of 8% to 10%. Participation will provide access to a diversified portfolio of approximately 40 (estimated SWEN CP) holdings in the above-mentioned sectors.
The program has three investment components:
- ~50% direct investments in infrastructure projects, alongside SWEN CP's longstanding investment partners
- ~40% in unlisted infrastructure funds already deployed in whole or in part, via secondary operations
- Up to ~10% in listed indexes and open infrastructure funds (liquidity pocket)
Outstanding ESG and a proven track record
Investors will also benefit from SWEN Capital Partners' considerable expertise in the analysis of ESG criteria, which have been at the heart of every decision for over a decade. Four ESG markers (Respect for the environment, fair sharing of value creation, diversity and connection to essential goods and services in French regions, cf. the SWEN CP sustainability policy) have been established to provide a reliable compass for orienting responsible investment. The markers chosen allow us to assess the maturity of management companies and assets. The teams can thus identify areas for improvement and monitor their progress. Depending on the marker profile of each asset, SWEN CP may organize a commitment and dialogue process. And lastly, in line with SWEN CP's raison d'être and values, the fund will gradually implement a "Net Environmental Contribution" (NEC) methodology, starting with direct investments (See NEC Initiative website: www.nec-initiative.org). A true environmental footprint based on a multi-criteria approach, NEC measures the alignment of an activity (company or project) with ecological and climate transition. Science-based and relying on physical units, it addresses not only climate issues but also biodiversity, water, waste/resources, and air quality.
The management company will benefit from a nine-strong investment team of experienced individuals, reinforced by a committee of four independent experts and an ESG team of eight employees, led by Isabelle Combarel, Deputy Managing Director in charge of Development and ESG. All of these professionals have previously demonstrated their ability to create custom investment programs for investors and to provide regular returns consistent with the risk levels offered by this asset class.
“We are delighted to offer individual investors a turnkey solution for accessing the infrastructure market with the launch of our SWEN Exclusive Infrastructures fund. As a long-standing and leading ESG player and an infrastructure pioneer with €2.7 billion of assets under management in this business, we are confident that this initiative will meet with strong interest from investors. With this vehicle, we are also determined to offer individual investors an opportunity to behave as responsible investors, combining financial and extra-financial performance by directing their savings towards the real economy,” said Jérôme DELMAS, CEO of SWEN Capital Partners.
“Through its positioning on a high-end clientele both in France and internationally, Groupe Crystal has become a major player in the distribution of private equity solutions, which we aim to make 20% of our inflows for 2021. For several years, we have been seeking to offer our individual clients an opportunity in the highly popular asset class of unlisted infrastructure. This is now a reality thanks to our long-term partnership with OFI AM and, more specifically, its subsidiary specializing in unlisted investments, SWEN Capital Partners, with whom we worked on the design of SWEN Exclusive Infrastructures to best suit the needs of our clients,” emphasized Jean-Maximilien VANCAYEZEELE, Director General of Groupe Crystal.
“The unlisted infrastructure asset class is very attractive but difficult to access. Determined to open its product range to private management, SWEN Capital Partners worked with a wealth management specialist to create a product combining direct investment and secondary funds that fully meets the diversification needs of a wealth management clientele,” concluded Xavier LE BLAN, Director of Innovation and Private Management at SWEN Capital Partners.
About SWEN Exclusive Infrastructures
SWEN Exclusive Infrastructures is a Specialized Professional Investment Fund (SPF) not subject to approval by the AMF. The Fund may therefore adopt management rules not applicable to approved funds. Potential investors are reminded that the subscription, acquisition, sale, or transfer of Units, directly or through an intermediary, is reserved for informed investors as described in Article 423-27 of the AMF General Regulations, and who have the experience, knowledge, and competence necessary to make their own investment decisions and properly assess the risks involved.
Before investing in this Fund, you should understand how it will be managed and comprehend the specific risks associated with its management. In particular, you should be aware of the terms and conditions specific to the operation and management of this Fund (investment and commitment rules; terms and conditions for subscriptions, acquisitions and redemptions of units; net asset value below which the Fund is dissolved). These terms and conditions are set out in the Prospectus and Fund Regulations, as are the conditions under which the Prospectus or Fund Regulations may be amended.
About Groupe Crystal
Today, with close to 50,000 clients, including 5,000 across the globe, 300 employees and more than €5 billion in assets under administration, the Groupe Crystal is a French leader in the realm of independent investment and wealth management advice. Via its 30 offices in France and abroad, its various entities deliver expertise, solutions, and services of superlative quality to clients and partners in the legal and accounting professions.