AA UNION CAPITAL INVESTMENT STRATEGY
Value Investing in Sectors Where AA UNION CAPITAL Has Proven Expertise, Applying private equity disciplines to maximize value and drive returns in infrastructure assets.
Transport
Energy & Utilities
Communications
Infrastructure Health
Transport
Investment Focus – Rail
Existing Platform | Shortline Rail | Intermodal/ Logistics | RAIL PPP |
Opportunity to invest through and/or leverage existing market-leading platforms in UK, Europe and Australia | Fragmentation within shortline rail industry will present opportunities to acquire and roll-up shortline rail and rail service businesses | Opportunity to invest across intermodal/ logistics and shortline rail through strategic partnership with intermodal/logistics company | Significant pipeline of greenfield PPP’s underway in Australia, in addition to significant potential brownfield opportunities |
Market leading platforms provide potential exclusive investment opportunities | Additional financial pressures from declining coal volumes may lead US Class I’s and shortlines to spin-off and outsource non-core operations | Deep understanding of and operational expertise in intermodal and logistics | Well placed to utilise extensive experience to participate in such opportunities |
Energy & Utilities
Investment Opportunity
Flexible Fast Response & Storage | Energy Services | Mid-stream GAS | Opportunistic |
Grid connected thermal power plants and largescale batteries which provide “balancing” services to the grid/market to address S/D mismatches that cause grid disruption | Services to commercial and industrial (C&I) customers to manage energy demand (backup generation, storage, demand response, energy management etc.) | Midstream sector (natural gas storage, small scale LNG, CNG, and liquids terminals) | Large Scale Gas Power Plants (CCGT), Wasteto- Energy, and select utility plays (Transmission and Distribution) |
Exploring opportunities to develop a platform of Flexible Fast Response and storage in W. Europe, Australia and N. America | Looking to build out the Adven model across key developed markets with an immediate focus on the Nordic region | Gas storage and small scale LNG in N. America and Australia, LNG regasification and liquids terminals in W. Europe | Includes traditional power assets (potentially greenfield) with M/T contracts in N. America; microgrid networks for isolated location in WA or QLD; and L/T contracted power assets in certain secondary markets (e.g. Mexico, Chile and Baltics) |
Communications
Investment Opportunity
Infrastructure Characteristics | Communication Infrastructure | Information Infrastructure | |||||||
Towers | Fibre | Wireless | Satellites & Uplink | Wireless Spectrum | Sub-Sea Cable | Data Centres | Cloud Services | Internet of Things | |
Barriers to Entry | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Customer stickiness | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Mid-long term contracts | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Robust Margin and cash flow | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Diverse Customer Base | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Operating Leverage | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Overalll | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() | ![]() |
Infrastructure Health
Investment Opportunity
Health Provider Services | Medical Technology Services | Pharmaceuticals | |||
Sub-sector | Example | Sub-sector | Example | Sub-sector | Example |
Primary Care | General Practitioners; Nurses; Physiotherapists; Pharmacists; Dentists | Hospitals | Acute hospitals; Specialist Cancer Hospitals | Generic Pharma | Non-Branded Pharmaceuticals such as Novartis |
Contract Manufacturing | Clinical Trials; Formulation Development | ||||
Social Care | Nursing Homes; Mental Health; Disability Care | Industrial | Wheelchairs; Artificial Body Parts | Pharma Including Biotech | Branded Pharmaceuticals such as Astra Zeneca |
Devices | Contact Lenses; Hearing Aids; Voice Prosthesis | ||||
Sub-Acute/ Step-Down Care | Rehabilitation; Palliative Care | Diagnostics & Imaging | MRI Scanning, Radiology | Pharma Research | Cancer Research, Pharmaceutical cell biology |
Integrated Investment Process
AA Union Capital Employs a Consistent, Robust and Exhaustive Approach to its Investment Processes
Identify opportunities & preliminary due diligence | Concept paper | Detailed due diligence | Investment paper | Financial Close | |
Origination Team | |||||
Asset Management Team | |||||
Tax & Legal | |||||
Debt Advisory | |||||

Identify opportunities & preliminary due diligence
Identify opportunities & preliminary due diligence
- Weekly team meeting with rigorous screening based on
– Relative attractiveness
– Compliance with investment strategy
– ESG analysis
– Portfolio fit (diversification across currency, sectors, risks)
– Value-add opportunities
– Competitive landscape
– Resources - Peer review brings diverse perspectives/objectivity
- Appropriate sector specialist/asset management involvement
Creating Value through Active Asset Management
Combining a private equity approach with AA UNION CAPITAL’s strong infrastructure heritage to drive value

Driving value creation within the individual portfolio company
Identifying and executing value accretive acquisitions
Selection of high calibre non-executive directors
Operational efficiency improvements
Management team selection, development and incentivisation
Optimising business planning
Driving strategic direction
Leading contract negotiations
Growth projects
Capital management and structuring
Influencing other shareholders
Proactive and consistent application of AA Union Capital’s infrastructure heritage approach drives value across the portfolio
Asset transition plans and 100 day plans
Unified approach to HR strategies
Portfolio synergies
Joint ventures to harness strengths across investors
Cyber security
Imbedding ESG considerations
Tax optimisation
Developing and implementing hedging strategies
Procurement expertise