Philosophy & Process

Investment Philosophy

We believe that superior risk-adjusted returns can be achieved, over the long-term, through investment in Black-owned Independent Power Producers (IPPs) and broader transformational infrastructure (water, transport, ICT, hospitals, schools) assets led by high-quality management teams with a track record of excellence.

General Investment Criteria

  1. Project Finance and PPP infrastructure investments with strong contractual structures, demonstrating the appropriate legislative framework and developmental impact.
  2. Predominant focus on energy complimented by other socio-economic infrastructure projects
  3. Quality and track-record of the project sponsors, contractors, credit worthiness of the off-taker (in the case of Energy PPAs; capability of the concessionary authority (in the case of transport concessions), and the robustness of the contractual and financial structures.
  4. Engagement with project stakeholders e.g. senior sponsor(s), EPC and O&M contractors, local funding institutions and/or Development Finance Institutions to identify local counterparty risks.
  5. Achieve a net annual rate of return to investors of CPI +6% (currently a nominal 12%) while balancing risk-taking, through (i) investments in (greenfield) projects, with strong potential of profitability but involving construction risks and, - (ii) investments in (brownfield) projects, generating less profitability but already operating and generating stable cash-flows
  6. Appropriate corporate governance rights and board membership in the project company

Our Investment Process

Screening

(Proprietary Database)

Transaction Close
(Binding Offer)

Pre-evaluation
(NDA)

Investment Monitoring
& Reporting

 Due Diligence
& Portfolio Construction
(7-Stage Proprietary Process)

Exit

Bayakha Infrastructure Partners is an authorised financial services provider (FSP number 47414)

© 2019 Bayakha Infrastructure Partners