January 2, 2020

Portfolio Performance

What is Infrastructure and Energy Portfolio Performance?

Within Energy and Infrastructure, Portfolio Performance (also described as Investment Performance or Asset Performance and Analysis) refers to the oversight of a portfolio of physical assets, often at group level. Within a Portfolio Performance function you would typically expect Project Review processes, Risk Management, Value Enhancement, Valuation and Secondary Market Analysis.

Supporting Asset Management, a Portfolio Performance team coordinates group activities. For an international Investor or Corporate with activities in multiple geographies, you can expect the regional Asset Management team to run the day-day commercial and technical activities with the Portfolio Performance team pulling together a group level view of the combined regions. In addition, the Portfolio Performance team will act as the central function promoting best practice, governance and consolidation. Refinancing and Divestment actives are often carried out by Investment Management and Asset Management at a local level but supported from Group level by Portfolio Performance. 

What do the Portfolio Performance team do?

Risk Management – Market Analysis / Counterpart Credit Risk /Portfolio Risk Management is the process of identifying, assessing and controlling threats to an organisation’s capital and earnings. These threats, or risks, could stem from financial uncertainty, government policy, merchant income movements, counterparties, legal liabilities, strategic management errors and much more. 

Project Review Process – For an Investor or Asset Manager with interests in projects ranging from pre Final Investment Decision to Under Construction and Operations, the ability to monitor progress at a group level is key. Project Dashboarding and Asset Management consolidation software are two areas growing in importance. 

Strategy – A broad term covering everything from;

  • Group-wide strategic planning. 
  • Corporate strategy / public policy; regulatory and competition investigations 
  • Presenting key issues / opportunities to primary investment teams 
  • Supporting three-five year business models and driving working groups 

Research

  • Lead sector specific analysis within Infrastructure & Energy segments 
  • Monitor investment sectors, geographies, emerging technologies and prevailing policy
  • Supporting investment appraisal, funding approvals and broader business case development

Value Enhancement – Identifying value creation opportunities, presenting proposals to investment committee. Driving Value Enhancement projects from inception to delivery. 

Secondary Market Analysis – Maintaining up to date with market developments in the secondary space on pricing and discount rates as well as market players. Monitoring secondary market activity to support asset valuation and divestment activities. Comparing the assumptions within internal valuation models to third parties. 

Asset Valuation – Guiding and setting group Valuation methodology. Managing the consolidated group asset valuation processes. Coordinating Asset Valuation audit processes. 

Refinancing – Raising new debt on assets either under construction or in operations. This is often carried out at a local level for individual assets but run at a group level when refinancing multiple assets within the same segment. 

Divestment – Managing the sale process of developed assets. Being at the forefront of each transaction, from identifying targets for divestment through to financial close. Leading on value maximisation. Resolving issues hindering divestment. Manage due diligence and transaction process (Data Room and Q&A sessions).

Compliance – Promoting best practice and group governance. Coordinating health and safety, quality and environment legislation and other corporate policies and standards.

Is Portfolio Performance the same as Asset Management?

Within a small organisation, there might not be a distinction. The Asset Management team could look after the day-to-day technical and commercial asset management as well as the financial reporting, governance, risk, valuation work etc. For a larger group, whilst the Asset Management will stay involved for their assets, they will be guided in best practice and assumptions by a group function who will consolidate activities across multiple regions and be responsible for group-wide reporting. Portfolio Performance has a number of names depending on the organisation and structure; Investment Performance and Asset Analysis and Planning are two common alternatives.

What future developments can we expect within Infrastructure and Energy Portfolio Performance?

The priority of a Portfolio Performance team is to maximise asset value, ensure the reporting is accurate and risks are anticipated ahead of real time. As a result, many of our clients are pushing for greater capabilities in-house. Where they have relied on third party advisors in the past to carry out an array of these activities, they are bringing more and more in-house to lower costs and improve collaboration.

Example Archived Infrastructure & Portfolio Performance Vacancies

Financial / Portfolio Performance Analyst – Energy & Infrastructure Fund

Financial / Portfolio Performance Analyst sought by global investment manager focused on Energy & Infrastructure. Sitting within Asset Planning & Analysis you will support portfolio management and valuation services, undertaking detailed commercial project reviews, originating and delivering value creation across the portfolio and monitoring the secondary market.

Strategy and Partnerships Manager – Global Infrastructure Investor – TMT (Telecommunications)

Strategy & Partnerships Manager sought by leading Infrastructure originator, active investor and asset manager. Joining a newly formed Strategy & Partnerships team you will be lead on research and planning, support asset investment and help define the group strategy within TMT (Telecommunications, Media & Technology).

Head of Portfolio Performance – Energy & Infrastructure Fund

Head of Portfolio Performance sought by leading Infrastructure and Energy originator, active investor and asset manager. Overseeing the central Portfolio performance team you will lead group-wide project review processes monitoring the risks within the portfolio and reviewing individual project valuation assumptions in relation to value enhancements and risk.

Head of Asset Valuation – Energy & Infrastructure Fund

Head of Asset Valuations team sought by leading international Infrastructure & Energy Fund. The successful Head of Asset Valuations will have experience working in renewable energy and/or infrastructure valuations. You will be comfortable supporting the investment team advising on the economic viability of a range of transactions as well as leading the consolidated asset valuations at portfolio level.