Vontobel has successfully purchased a substantial minority investment in Ancala Partners, a London-based independent private infrastructure manager.

Announced on 8 February 2024, Vontobel’s foray into the private markets is marked by the acquisition of a sizable minority position in Ancala Partners, which gives Vontobel investing capabilities in the rapidly expanding private infrastructure segment.

Customers will be able to take leverage of this offering’s attractive risk-adjusted returns and potential for diversification, which is bolstered by its low correlation to the GDP and other main asset classes.

Ancala is a significant infrastructure manager, overseeing 18 assets functioning in vital infrastructure sectors like as transportation, utilities, renewable energy and energy transition, and the circular economy, with a total value under control of about €4.1bn ($4.3bn).

Since its founding in 2010, Ancala has consistently implemented a strategy that has produced increased returns from investments with traditional infrastructure features.

Ancala’s distinct strategy is centered on finding bilateral investment opportunities, offering cash income, inflation-linked protection, downside protection, and a special method of generating long-term value for the companies in its portfolio.

A senior team of partners at Ancala leads the company. They have a wealth of expertise investing in and enhancing the value of infrastructure assets over several economic cycles and vital industries.

Vontobel’s strong position in providing customers with active, diversified strategies that have the potential for long-term success is strengthened by this deal.

The necessity of replacing aging infrastructure and the rise in government legislation focusing on infrastructure are driving the rapid growth of the global infrastructure market.

Moreover, the transaction gives Vontobel the ability to take advantage of these tailwinds and offer clients greater diversification.

Ancala’s management team, under the direction of managing partner Spence Clunie, will continue to operate the company independently in terms of day-to-day operations as well as its investment and governance procedures.

Vontobel and Ancala have reached an agreement on terms that will allow Vontobel to eventually purchase the remaining holdings, and they are fully committed to each other’s growth and success in the future.

The transaction was funded out of Vontobel’s own income, and its CET1-ratio remains comfortably over its stated objective of 12%.