Debt’s Bull Case ‘Remains Intact’
In this Q&A, Pieter Welman describes how an evolving political backdrop and the urgency of the energy transition are shaping the opportunity in infrastructure debt.
Ten years ago, Barings made the decision to set up an infrastructure debt team, initially to handle in-house funds. "We were one of the early investors in this space to set up teams," says Pieter Welman, head of global infrastructure.
As the business grew, the team launched a third-party offering and raised a commingled high-yield debt infrastructure fund. Its focus is primarily on North America and Europe, and with a book worth close to $15 billion now, Welman believes "size does give you an advantage, but it is also important to demonstrate that you have 'flexible capital' and are willing to work with different partners and come up with innovative structures". He surveys the current infrastructure debt scene and finds there is a lot to be positive about.