With €19.4bn ($21.3bn) in assets under management, DWS has built an infrastructure business over 20 years, executing more than 100 transactions across infrastructure sectors critical to the functioning of the economy.
A large insurance investor client base means the company targets, wherever possible, qualifying infrastructure assets, bringing the capital charge down to an estimated 33%-36% and therefore improved return on regulatory capital.
DWS has developed a differentiated strategy that emphasises its specific areas of strength - namely the European mid-cap sector and bilateral transaction opportunities where price is not the sole factor.
The depth and diversity of its team allowed DWS to originate transactions and develop long-term partnerships with companies. It also has enabled the asset manager to pursue an innovative approach to deal sourcing, originating target assets that often resulted in acquisitions from negotiated processes, as opposed to public auctions.
"DWS's infrastructure strategy has proven particularly attractive to our insurance investor client base due to a differentiated strategy which focuses on downside-protected yield-based returns with reduced capital charges to improve returns on regulatory capital," Hamish Mackenzie, head of infrastructure at DWS, said. "Our innovative approach to originating assets gives us a competitive advantage in deal sourcing, which is evident in our track record and returns to investors."
The DWS infrastructure business was further praised for its commitment to environmental, social and governance (ESG) considerations which are integrated into every phase of the investment process from due diligence to acquisition, asset management and divestment. DWS also works with company management to improve the ESG profile and support the long-term sustainability of investments and ESG reporting is included in each quarterly valuation.