CVC DIF

1. Executive Summary and Organizational Structure

Formed through CVC's acquisition of a majority stake in DIF Capital Partners (originally established in 2005 as an independent infrastructure manager headquartered in Schiphol, Netherlands), CVC DIF manages over EUR 25 billion in assets.

The firm operates across a global network of local offices throughout Europe, North America, Latin America, and Australasia, extending into Asian markets. CVC DIF functions as an institutional asset manager, raising capital from global institutional clients—such as public and private pension funds, sovereign wealth funds, insurance providers, financial institutions, and family offices—and deploying it into essential mid-market physical infrastructure, platform businesses, and operational services.

1. Core Operating Model and Services

As a alternative investment manager specializing in infrastructure, CVC DIF does not sell physical off-the-shelf goods. Instead, its core offerings consist of institutional asset management services, capital deployment solutions, structural project financing, and active operational value creation.

Asset Management and Investment Structuring CVC DIF manages pooled commingled funds, co-investment vehicles, and customized accounts for institutional limited partners. Its primary service portfolio includes: - Capital Sourcing and Portfolio Construction: Sourcing, evaluating, structuring, and closing equity investments in operational infrastructure assets, public-private partnerships (PPPs/P3s), concessions, and high-growth platform companies. - Active Ownership and Portfolio Governance: Providing operational oversight, strategic governance, capital expenditure planning, and management enhancement for its portfolio companies to achieve operational efficiency. - Responsible Investment Integration: Embedding Environmental, Social, and Governance (ESG) standards, decarbonization pathways, and sustainability metrics across asset lifecycles. - Divestment and Value Realization: Structuring exits through strategic sales, secondary market transactions, or public listings to return capital and yield to institutional investors.

1. Investment Strategies and Fund Families

CVC DIF executes its investment mandate using two primary, complementary equity strategies designed to capture different risk-return profiles across the infrastructure spectrum:

Strategy 1: Traditional Infrastructure (DIF Infrastructure / Core Strategy) This strategy targets lower-risk, core and core-plus essential infrastructure assets that offer long-term contractual cash flows, regulated rate structures, inflation indexation, and downside protection. - Asset Types: Concessions, public-private partnerships, utility platforms, and availability-based assets. - Target Profile: Focuses on equity tickets in operational or near-operational projects providing high yield predictability and long-dated contract protection. - Representative Vehicles: The DIF Infrastructure fund series (e.g., DIF Infrastructure VII, DIF Infrastructure VIII).

Strategy 2: Value-Add Infrastructure (DIF Value-Add / CIF Strategy) Formerly designated as the DIF Core Infrastructure Fund (CIF) platform, this strategy focuses on small- to mid-market value-add opportunities with higher capital appreciation potential. - Asset Types: High-growth platform businesses, small-scale build-and-buy strategies, energy transition assets, and operational digital infrastructure companies. - Target Profile: Combines downside protection with active growth strategies, operational repositioning, and strategic expansions. - Representative Vehicles: The DIF Value-Add fund series (e.g., DIF Value-Add III, DIF Core Infrastructure Fund II).

1. Target Sectors and Real-World Applications

CVC DIF deploys capital and manages businesses across four primary infrastructure pillars:

Energy Transition and Renewable Energy - Infrastructure Scope: Solar, onshore/offshore wind, battery energy storage systems (BESS), biomass, renewable gas (biomethane), green hydrogen initiatives, and distributed energy platforms. - Strategic Focus: Accelerating decarbonization by funding greenfield development projects, acquiring existing generation facilities, and scaling utility-scale clean energy developers.

Digital Infrastructure - Infrastructure Scope: Fiber-to-the-home (FTTH) and fiber-to-the-business (FTTB) networks, telecom towers, data centers, and edge computing facilities. - Strategic Focus: Funding the rollout of high-speed broadband and connectivity architecture in underserved regions and acquiring regional telecom platform entities (e.g., investments in Manx Telecom Group, TDF Fibre, and independent fiber networks).

Transport and Logistics - Infrastructure Scope: Roads, bridges, rail infrastructure, rolling stock platforms, EV charging infrastructure, ports, and maritime terminal facilities. - Strategic Focus: Supporting modern transport networks that reduce carbon emissions and facilitate regional logistics through long-term concession models or availability-based revenue contracts.

Utilities and Sustainable Infrastructure - Infrastructure Scope: Water supply and treatment facilities, waste management, district heating networks, and essential social infrastructure (healthcare and educational facilities). - Strategic Focus: Financing essential services backed by municipal or governmental counterparties, long-term off-take agreements, or stable regulatory frameworks.

1. Value Creation and Operational Methodology

CVC DIF utilizes a localized origination model backed by CVC's global network. Investment teams operate in local markets to negotiate proprietary transactions, navigate local regulatory landscapes, and interface with municipal and commercial partners. Value creation during the ownership phase is driven through: - Buy-and-Build Expansion: Executing add-on acquisitions to expand single-asset utilities or regional telecom providers into broader geographic platforms. - Operational Enhancement: Implementing optimized capital structures, upgrading governance, digitizing operational workflows, and converting conventional operations toward sustainable energy standards. - Contract Optimization: Renegotiating long-term supply agreements, off-take contracts, and power purchase agreements (PPAs) to lock in stable cash flows.