International Public Partnerships – executive interview

International Public Partnerships (INPP) is a responsible investor in social and public infrastructure assets aimed at providing investors with a consistent and predictable return while meeting societal and environmental needs, both now and in the future. The company has been listed since 2006 and has since built a strong and consistent track record of operational and financial performance. INPP’s successful investment strategy focuses on assets at the lower end of the infrastructure risk spectrum, with availability based or regulated revenues, and a strong level of direct or indirect government backing. Dividends have increased each year since listing and near-term DPS growth has benefited from the positive linkage of revenues to inflation. The company’s projected portfolio cash flow is sufficient to provide growing dividends for at least the next 20 years without any need for further investment.

The external investment adviser to INPP since launch is Amber Infrastructure, an established, well-resourced specialist. Amber’s ability to actively and responsibly source and manage INPP’s investments, and enhance its performance, is one of the company’s core strengths. In this interview, Chris Morgan, senior investment director at Amber Infrastructure, discusses INPP’s strategy, performance and prospects. Despite INPP’s strong track record and a substantial need for private infrastructure funding, the macroeconomic environment has weighed on its share price in the past two years, in common with the wider sector. We highlight the attractive returns that the existing portfolio is expected to generate, with opportunities for further asset enhancement, and the scale of the opportunity for accretive future investment in a structurally supported sector.

For more information, please see our initiation note.