Infrastructure, particularly renewable energy, is a key focus of BONUS Pensionskasse’s private market investments, alongside private equity, private debt and real estate.
The Austrian pension fund invests in both liquid and illiquid alternatives. Its liquid alternatives allocation follows a risk-mitigation approach, aiming to cushion the impact of sharp equity market declines and stabilise overall portfolio performance. Investments include commodity trading advisers (CTAs) and absolute return strategies.
Within illiquid alternatives, infrastructure is a core theme across both equity and debt. Renewable energy dominates the fund’s infrastructure equity investments, with a focus on greenfield projects and the development of renewable energy assets in developed markets, primarily solar and wind power.
Several structural trends underpin the strategy. Global energy demand is rising, driven in part by data centres and the transition to decarbonisation. The geopolitical situation in the Middle East also highlights the importance of renewable energy in reducing Europe’s dependence on external energy supplies.
The renewable electricity market has become more competitive and scalable. Against this backdrop, investors must consider energy not only as a standalone business model but also from a long-term perspective. Investment in energy infrastructure is expected to continue growing, making private capital essential to financing the transition.
Hydrogen development will require regulatory support and government subsidies to meet future demand. BONUS Pensionskasse sees this as an area in which it could expand its investments over time.
Grid stabilisation is another priority, given the fluctuating output of renewable energy sources. Battery storage offers an attractive business model within this niche, with operational requirements that are simpler than those of wind power projects, for example.
In infrastructure debt, the fund focuses on senior tranches and avoids investing in the same projects through both equity and debt to prevent risk concentration. Its senior infrastructure debt investments are diversified across sectors, including renewable energy, transport and rail infrastructure in Europe. These investments typically involve co-financing arrangements designed to generate stable returns.
In private equity, the fund invests in both primary and secondary transactions, focusing on mature businesses with stable business models. One strategy, now nearing completion, involves acquiring established family-owned businesses that lack the capacity to scale up.
In private debt, the fund prefers secondary transactions, which offer greater scope to assess the quality of existing portfolios. It also invests in more specialised areas, including distressed debt, financing companies undergoing restructuring or establishing new financing structures. The strategy aims to benefit from their recovery, while the countercyclical nature of distressed investing is another consideration.
Commodities play a significant diversification role in the fund’s portfolios. BONUS Pensionskasse has maintained exposure to the asset class for many years, with the allocation having performed well historically.
In real estate, the fund focuses on Europe, particularly the DACH region, with an emphasis on residential property.
BONUS Pensionskasse manages 13 portfolios covering a broad range of risk profiles. Most are structured as Veranlagungs- und Risikogemeinschaften (VRGs), pooling the assets of multiple clients with similar requirements.
In fixed income, the fund invests in government bonds, corporate bonds, convertible bonds and emerging market debt. Its emerging market debt allocation is focused on local-currency bonds, and the fund plans to increase this exposure gradually in the near future.
Equity investments are spread across three regions: global markets, Europe and emerging markets. The fund has a European bias in equities because its liabilities are denominated in euros.