Direct Investing by PGGM Infrastructure

Infrastructure is an asset class that aligns perfectly with PFZW's objectives. It allows us to invest directly in companies that provide essential services to the community, such as public-private partnerships, energy, transport, and digital infrastructure. At the same time, these investments generate stable income, often linked to inflation. This combination makes Infrastructure particularly attractive.

A Distinctive Approach
What sets our strategy apart is our direct investment model, supported by an in-house specialist team of 45 investment professionals. For 15 years, we have been investing directly in the equity of companies, mainly across Europe and the United States. This approach allows us to influence company strategies and take an active supervisory role. Often, a senior PGGM team member sits on the Supervisory Board of the portfolio companies, bringing valuable expertise. Additionally, we appoint external board members - often former CEOs or CFOs - who provide strategic insights and oversee business plan execution.

As a major shareholder, we have a direct say in a company's strategic direction. While we do not take the entrepreneur’s seat, we play an active role in key decisions and long-term value creation. Management teams report to the Supervisory Board, and all significant investments and decisions require approval. If necessary, we have the right to replace management members to ensure the company’s growth and continuity, and maximise the value of our investments.

The Benefits of Direct Investments
We choose direct investments for several reasons. First, we control where we invest, bypassing fund managers. This gives us a cost advantage, as we avoid external management fees. Furthermore, we control how long we hold investments. For example, with LBC Tank Terminals, we actively contributed to the company’s growth for 12 years before selling it to a Japanese buyer at a strong return. As direct investors, we also drive important agendas - such as sustainability and diversity - and guide companies through the transition from gray to green.

Active Ownership
I often say: the real work begins after the deal. While making the investment is crucial, we truly get to work actively with management once we are shareholders. We help execute strategic plans, evaluate performance, and adjust the course as needed. By sharing best practices across our portfolio, we stimulate growth and efficiency.

Take Eurofiber, a company in the digital infrastructure sector for businesses (B2B). This company expanded from the Benelux to France and Germany, and diversified into cloud solutions. We support this growth not only with capital but also with strategic advice and financing solutions. For growth-stage companies like Electra, which focuses on charging infrastructure, we play an equally active role. With our long-term vision, we help these companies grow and professionalise.

20 Years of Infrastructure Investments
This year marks the 20th anniversary of PGGM Infrastructure, during which we have built an investment portfolio of approximately EUR 15 billion. Through active ownership, we remain focused on stable returns and sustainable growth. Direct investments allow us to maintain control, reduce costs, and guide companies strategically. The recent sale of LBC Tank Terminals highlights how we grow companies and realise value at the right moment. As an asset class, Infrastructure fits seamlessly into our strategy, integrating return, risk, and sustainability into the portfolio we manage.