Infrastructure Valuations

Our typical methodology of a model assessment and market analysis for discount rates allows us to give you the best service. Our valuation principles are based on a discounted cash flow methodology. We derive and apply a benchmarked discount rate to the cash flow expected to arise from each such asset. As Valuation Agent we advise listed and unlisted UK infrastructure funds.

We base our discount rate assessment on an extensive database of comparable transactions, our advisory experience and our involvement in secondary transactions and the following:

Sterling interest rates
Movements of comparable credit markets
The performance of the underlying assets, including any actual or potential event in relation to the underlying asset that may be expected to have a material impact on the ability of the borrower to meet its obligations to its lenders, such as operating performance failures, or the credit impairment of the PFI contract obligor
General infrastructure market activity and wider investor sentiment, by taking into account discussions with market participants and publicly-available information on relevant transactions and publicly-traded infrastructure funds
Changes to the economic, legal, taxation or regulatory environment

While valuations involve the use of judgement in assessing the expected future cash flows from each investment, we consider the specific characteristics of the investments and focus our assessments on the likelihood of any interruptions to the debt service payments, in light of the operational performance of the underlying asset/s.

The firm's Global Infrastructure Finance team is a significant provider of valuation services in the infrastructure sector to large infrastructure funds and other clients.

Key highlights

Valued over £1.25bn infrastructure assets in the past 12 months
Very broad sector coverage: PPP, renewable energy, conventional power, waste, housing, transport, care homes, plus bespoke valuations of investments in other areas such as shipping and contract-backed securities
Broad expertise at valuing different financial structures: senior debt, mezzanine debt and levered and unlevered equity
Cross-border valuation expertise
Strong experience of valuing in the context of related party transactions.
Experience of working with listed and unlisted funds, and in assisting lenders with valuations to assess LTV requirements
Experience at applying different valuation methodologies to reach a judgement