PRIVATE INCOME
INFRASTRUCTURE, PRIVATE CREDIT, INCOME OPPORTUNITIES
KEY PORTFOLIO FIGURES
$6.8 B
9%
MANDATE
The Private Income strategy invests in a broad range of strategies covering infrastructure, other private real asset investments (such as timber and hard asset leasing), private credit, opportunistic / distressed credit and other private market investments that provided income generation to the Fund. We target assets and strategies that provide a combination of principal protection, current income (e.g. interest payments or dividends), inflation mitigation and equity upside. We target an absolute return in excess of CPI + 4%, but evaluate each opportunity on the expected return, relative to the risks we are taking.
Private Credit investments are often assetbacked and generate high current income.
The APFC invests through funds into a portfolio of assets that is diversified by strategy, industry and geography. These strategies include: direct lending, mezzanine lending, distressed/opportunistic credit, asset-based lending, and other strategies. While the portfolio is currently focused primarily in the U.S., we evaluate opportunities globally.
Income Opportunities investments are designed to capture attractive, sometimes fleeting, opportunities that do not fit into the Private Credit or Infrastructure portfolios. The portfolio includes investments such as investments targeting life settlements, liquidity solutions, and mineral finance among others. We continue to evaluate opportunities that are created due to economic, regulatory, and relative value anomalies.
Select Investments
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PERFORMANCE
The performance target for the Private Income portfolio is a real return of CPI + 4.0%. The life-cycle of Private Infrastructure and Income Opportunities investing, which can be similar in structure to private equity, will in many circumstances contribute to an uneven return profile or J-Curve phenomena for investments early in their respective life-cycle.
Performance reports for the portfolio can be found in the monthly performance reports and in the board meeting packets.