Targeting sustainable, long-term returns from core infrastructure

HICL’s investment proposition is to deliver sustainable income and capital growth from a diversified portfolio of investments in core infrastructure.

Our business model

How we create value

Cash flow quality

  • Low volatility in a range of macro environments
  • Suitable / diverse counterparties
  • Inflation protection
  • High capital cost
  • Low operational complexity

Market positioning

  • Monopolistic characteristics
  • Regulated in some circumstances
  • Capital intensive business model
  • Structural protections

Criticality

  • Strong social licence and public benefit
  • Real assets supporting essential services or facilitating important social function

Deliver a sustainable dividend

An annual distribution of at least that achieved in the prior year, fully cash covered and supported by long-term portfolio earnings.

Grow Net Asset Value

Preserve and grow the capital value of the investment portfolio over the long term.

Build a diversified portfolio to manage risk

Build a diversified portfolio to manage risk spanning high-quality assets across the core infrastructure market.

Provide a compelling cost proposition

Evidenced through a competitive Ongoing Charges Ratio.

1. Accretive Investment

HICL has a clearly defined Investment Policy. This sets the overarching framework within which HICL seeks to construct a resilient core infrastructure portfolio that delivers the Investment Proposition and is consistent with HICL’s overall risk appetite.

2. Value Enhancement

InfraRed’s Asset Management and Portfolio Management teams pursue opportunities to deliver outperformance from the existing portfolio through a systematic, strategic programme of value enhancement. This upside is often shared between HICL’s shareholders and public sector clients for PPP projects, or with the customers of regulated assets through periodic regulatory price reviews.

3. Value Preservation

InfraRed’s Asset Management and Portfolio Management teams work closely together, in partnership with the management teams in HICL’s portfolio companies, to deliver HICL’s Investment Proposition by preserving the value of investments for shareholders and stakeholders. The objective is to ensure portfolio companies continue to operate with the endorsement of their key stakeholders, including through the delivery of contractual and regulatory requirements, in order to deliver the base-case investment return.

Our communities

We invest in essential assets which have a social purpose and will have a beneficial impact on the quality of life for the communities where they are located.


8m+

people with direct access to healthcare facilities

500km+

of road and high-speed railways

120,000

student places across schools, colleges and university facilities

Our clients

We work together with corporate partners and public sector clients, including the UK’s National Health Service (NHS), local councils, National Highways, and various government departments.


18

NHS Trusts within the portfolio

33

Clients in the education sector

8

National transport departments

Our shareholders

A long-term sustainable mindset is imperative to achieve outperformance for shareholders. We offer long-term real returns from core infrastructure assets.


8.6% p.a.

Total Shareholder Return since IPO

156.5p

Total Shareholder Return since IPO NAV per share

8.25p

Financial Year 2025 dividend guidance

Why invest in HICL?

HICL's strategy in-depth

For a more detailed view of HICL’s strategy, operational performance from the top holdings in the portfolio as well as in depth reporting on risk management, corporate governance and financial position, please refer to our most recent Annual Report.