Sequoia Economic Infrastructure Income Fund Limited

Fund overview

Sequoia Economic Infrastructure Income Fund Limited is a Guernsey domiciled, closed-ended fund listed on the All-Share Index of the London Stock Exchange (ticker SEQI). The Fund focuses primarily on taking subordinated and select senior debt exposures to economic infrastructure projects, companies and special purpose vehicles.

The Fund invests in the UK, Western Europe, North America, Australia and New Zealand through acquiring both loans and securities. The Fund’s objective is to provide investors with regular, sustained, long-term distributions and capital appreciation from a diversified portfolio of infrastructure debt. 

The target dividend yield is 6% (5% in first year) and the fund is focused on generating a further 1-2% in capital appreciation. 

Fund strategy

The Fund is focused on mature jurisdictions (UK, Western Europe, North America, Australia and New Zealand – provided that each jurisdiction has at least an investment grade rating). This gives the Fund's Investment Advisor sufficient flexibility to find suitable investment opportunities from markets where its capital can command a premium whilst maintaining strong geographical diversity.

The Fund invests principally in operational economic infrastructure assets, targeting transactions that are secondary sales (bank deleveraging) or refinancings of existing capital structures. The Fund has strict industry and single borrower diversification criteria.

The investments target subordinated, junior and mezzanine debt in order to generate equity-like returns with better risk-return characteristics than equity.