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Pursue attractive risk-adjusted returns from essential infrastructure assets

Private infrastructure is the essential backbone of our growing modern economy with secular tailwinds in decarbonization, digitalization, and demographics. Opportunities span across energy, power, digital, transport and social infrastructure.

Private infrastructure opportunity

Our experienced private infrastructure team can help investors allocate capital and build a globally diversified portfolio across both core and core-plus asset opportunities.

  • Private infrastructure is a part of the Principal globally established Private Credit franchise and complements our leading Real Estate platform capabilities
  • Ability to design and structure transactions to customized portfolios based on client’s objectives across geography and, risk-return hurdle and other criteria
  • Expertise in originating direct and small club-style deal flow across the capital stack
  • Capability to act as structuring agent and lead arranger as part our underwriting process

Investment opportunities span across the following general sectors

Liquified natural gas tanker on the water at sunset

Energy

  • Pipelines
  • LNG
  • Terminals
  • Storage
  • Refineries
  • Renewable Fuels
Power cable lines at sunrise

Power

  • Renewables
  • Energy Storage
  • Conventional Power 
  • Transmission Lines
  • Distributed Generation
  • Energy Efficiency 
Data Center illuminated by blue and red lights

Digital

  • Data Centers
  • Cell Towers
  • Fiber Optic
  • Wireless/DAS
Aerial view of a road network

Transportation

  • Airports
  • Marine Ports
  • Rail
  • Toll Roads/Bridges
  • Logistics
Emergency entrance of a hospital

Social

  • Water
  • Wastewater
  • Healthcare
  • Housing
  • Stadiums/Arenas

Why private infrastructure

  • Macro secular tailwinds including decarbonization, digitalization, and demographic trends
  • Resilient high-quality assets benefiting from typically stable and predictable revenues
  • Compelling economics with historical yield premium over similar public corporate debt
  • Structural protections via robust covenants and/or real asset collateral
  • Strong diversification & global reach with exposure to a variety of economic / social trends and exposure to non-public Issuers
  • Historically low defaults and high recoveries compared to public corporate debt
  • Inflation-linked assets with fixed cost profiles
  • Continued growth is expected with $550-750bn of annual private credit demand over the next several years against over $1 trillion in estimated overall annual transaction volume1

Our approach: private infrastructure investment criteria

Our investment criteria philosophy is to generate attractive risk-adjusted returns with a highly disciplined underwriting process and unique sourcing capabilities built upon decades-long relationships.

Target asset descriptions
  • Essential hard assets or critical services businesses
  • Stable, predictable cash flows
  • Supportive regulatory and contractual frameworks
  • Higher barriers to entry
  • Strong sponsorship and robust project counterparties
Target geographies
  • Global with a focus on OECD countries
Approach
  • Direct (i.e., early or late)/Club/Syndicated
Format
  • Notes, Loans and Bonds (variable and fixed)
Seniority
  • Senior, HoldCo and/or Mezzanine debt
Tenor
  • 3yr–30yr+
Currencies
  • USD, CAD, EUR, GBP, AUD
Structure/covenant protections
  • Structure/covenant protections
  • Robust covenant structuring standards
  • Thorough understanding of collateral value

Portfolio management

Head of Private Infrastructure
Mansi Patel
19 years of experience
Head of Infrastructure Origination
Jeffrey Mathews
19 years of experience
Investment Director
Anders Amundson, CFA
18 years of experience
Investment Director
Nick Beauregard
15 years of experience
Associate
Tyler Jost
3 years of experience
Analyst
Jason Bae
5 years of experience
Contact us

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1 Source: Preqin, Principal Asset Management, March 2025.

Past performance does not guarantee future results. Asset allocation and diversification do not ensure a profit or protect against a loss.

Infrastructure issuers may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, operational or other mishaps, tariffs, and changes in tax laws, regulatory policies, and accounting standards. Foreign securities involve special risks, including currency fluctuation and lower liquidity. Some global securities may represent small and medium-sized companies, which may be more susceptible to price volatility than larger companies.