Watershed Infrastructure Fund (WIF) is created to provide investors opportunities to invest in infrastructure asset class while benefiting from predictable returns available from long-dated infrastructure debt investments. The investment focus of WIF is on the traditional infrastructure sectors such as transport, utilities, agricultural infrastructure (e.g. storage facilities, agricultural processing plants), and other viable public-private-partnership type investments. The purpose of the Fund is to provide long term senior debt that will enhance viability of such projects.
Watershed Infrastructure Fund provides leverage for the qualified projects by making available long-term financing and thereby creating superior, risk adjusted returns for its investors, almost entirely in the form of running yield. WIF will invest in cash-yielding project with:
- predictable cash flows derived from long-term offtake agreements and/or concessions and/or monopolistic assets
- first mover advantage or first priority in cashflow waterfall and senior lien on the project assets
- floating rate returns and capture return premium available from being a scare source of long-term funding
- focus on capital preservation