Everbright Overseas Infrastructure Investment Fund LP

Basic Infomation Case Studies Investment Team Contact

Introduction

Everbright Overseas Infrastructure Investment Fund LP (the “Fund”) is a fund targeting infrastructure investment opportunities globally. The Fund achieved its final close in 2019, securing USD460 million of commitment. The Fund is managed by indirect wholly owned subsidiaries of China Everbright Limited.

Investment Strategy

The Fund adopts a value-add or opportunistic strategy, mainly taking control or significant minority stakes in equity and equity-linked securities of companies or projects located in Europe and Asia-Pacific areas.

The Fund targets to invest between USD50 million and USD200 million for a single investment. Investment targets should have excellent management team, good operating track record and strong recurrent cash flows so that investors in the Fund can enjoy both a satisfactory cash yield and long-term capital appreciation.

The target industries include, but are not limited to, roads (including toll roads, bridges and tunnels), transport terminals (including airport terminals and related facilities), railway stations and similar, sea and shipping ports, communication towers, water distribution networks, water and wastewater treatment facilities, power generation facilities, power transmission and distribution networks, oil and gas storage facilities, oil and gas distribution networks, etc.

Portfolio Companies

The Fund completed the disposal of 100% equity of the concessionaire - Tirana International Airport SHPK in December 2020. This is the first infrastructure investment exit of China Everbright Limited along the “Belt and Road” countries.  Subsequently, the Fund successfully sold Norwegian public transport operator Boreal Holding AS in January 2022. Through the successful exit of its investment, the Fund has achieved outstanding performance, delivering a double-digit IRR and a DPI over 1.0x.  Currently the fund has two assets under management, located across China and Southeast Asia.

Village Telephone Limited

The sole provider of last mile optical fiber network for 600 villages in New Territories.

The company is currently raising a new round of funding with aim to expand the network to other areas in New Territories, and the ultimate goal to cover the entire urban areas in Hong Kong as well.

According to the statistics from Planning Department, the population in New Territories will increase from 3.78m in 2014 to 4.27m in 2024, circa 54.6% of total population, creating an increasing demand for high-speed internet services. 

The Hong Kong government expects the 5G services to roll out as early as April 2019. The upcoming 5G has let to inflated valuation of telecommunication companies. As the fundamental component of 5G deployment, optic fibre is critical to making Hong Kong a smart city and laying the groundwork for IoT.

The Fund expects the company to be listed in Hong Kong in 2020. 

BOREAL

Boreal is a Norwegian public transport operator, providing ferry, bus, and light rail services in Norway and other Nordic countries. Boreal's primary business is operating government public transport service contracts, with the government paying service fees based on the contract terms, regardless of the traffic volume used. Contracts typically last eight to ten years, with a two-year extension period. Upon expiration, contracts can be renewed through a new tender. Contract prices are also automatically adjusted for inflation.

The Fund invested in Boreal in April 2018. Through effective post-investment management, the Fund successfully improved the company's operational efficiency, optimized its contract portfolio, and expanded its business from Norway to Sweden. Furthermore, adhering to ESG green investment principles, the fund supported the company's expansion into electric buses and electric ferries, gradually transforming the company into a leading global green and sustainable transportation company. Between 2018 and 2021, Boreal achieved steady financial growth, with its revenue increasing by approximately 15% and its contract backlog expanding by 4.5 times, laying a solid foundation for sustainable future development.

The fund successfully sold Boreal in January 2022 and achieved excellent exit returns.

  • Kelvin Poon

    Investment Director & Head of Department

    Mr. Poon is Investment?Director and head of the Overseas Infrastructure Fund Department, and sits on the Investment Committee of Everbright Overseas Infrastructure Investment Fund LP. He possesses more than 23 years’ of investment experience. Prior to joining the fund, he was a Senior Vice President and IC member at Macquarie Everbright Greater China Infrastructure Fund, responsible for investment, asset management and fund raising. He was also the IC Observer for Everbright Ashmore Real Estate USD Fund. In 2004, Mr. Poon joined Lehman Brothers and worked at the Tokyo and HK office of the Global Real Estate Department. Later, he served as Vice President in Nomura International, in charge of the underwriting business for the mezzanine syndication related to the infrastructure industry across Asia-Pacific region. Kelvin also worked for PricewaterhouseCoopers.

    Mr. Poon graduated from the Macquarie University, major in Finance and minor in Actuary. He is a charter holder of Australia CPA and HKICPA. Mr. Poon also received a Diploma in Civil Law awarded by Tsinghua University and Hong Kong University.

  • Richard Hu

    Managing Director

    Mr. Hu is Managing Director of the Overseas Infrastructure Fund Department and sits on the Investment Committee of Everbright Overseas Infrastructure Investment Fund LP. He possesses over 28 years’ of investment experience. He served as Assistant General Manager of the investment management department of China Everbright Group (Hong Kong), Investment Committee member of Citicorp Everbright China Fund. ?He was responsible for managing China Everbright Group (Hong Kong) ‘s overseas investment assets between 1998 and 2006. Prior to joining the Fund, Mr. Hu was the General Manager of the Strategic Investment Department of the China Travel International Investment (H.K.) Limited (CTII) and a deputy general manager of CTII’s subsidiary in China, responsible for CTII’s cross border investment, corporate strategy, performance management and corporate governance.

    Mr. Hu holds a bachelor degree in Business Management in Guangzhou Zhongshan University and an MBA from Baylor University of US. He is a member of CFA and a member of ACCA.

  • James Cheng

    Investment Director

    Mr. Cheng is the Investment Director of the Overseas Infrastructure Fund Department. He possesses more than 18 years’ experience in financial investments. Prior to joining the team, he worked in Singapore office of Platinum Equity, a leveraged buyout fund specializing in operational improvements of businesses, covering investment opportunities in Asia focusing on Greater China. Earlier in his career, Mr. Cheng advised potential corporate and institutional investors on investment opportunities during his spell in KPMG Hong Kong and New York, with his latest position as associate director in deal advisory team in Hong Kong.

    Mr. Cheng graduated from The Chinese University of Hong Kong majoring in Economics. He is a CPA in the US and Hong Kong, as well as a CFA charter holder.

  • Derek Chen

    Vice President

    Derek Chen possesses more than 8 years’ project investment and investment management experience. Prior to joining the team, he was the secretary for Management Decision Committee and Investment Decision Committee of China Everbright Limited. He also served China Everbright Environment as a senior investment manager responsible for environmental and new energy projects’ investment in China and Southeast Asia markets.

    Mr. Chen holds a Ph.D. Degree in Management from Renmin University of China. Besides, he was a visiting scholar of London School of Economics and Max Planck Society.

  • Yifan Xu

    Investment Vice President

    Mr. Xu is the Investment Vice President of the Overseas Infrastructure Fund Department.  He possesses more than 9 years’ experience in project investment and investment management. Before joining Everbright, Mr. Xu was working in a family office based in Hong Kong, responsible for private equity and venture capital fund investments, direct investment in early-stage TMT companies as well as advising Asian institutions in acquiring overseas real assets.

    Mr. Xu graduated from the Chinese University of Hong Kong, major in Insurance, Financial and Actuarial Analysis, and is a charter holder of FRM and CFA.

  • Stella Ma

    Senior Associate

    Ms. Ma is the Senior Associate of the Overseas Infrastructure Fund Department. She possesses more than 6 years’ experience in financial investment and investment management. Prior to joining the team, Ms. Ma worked with Deloitte Southeast Asia, specializing in real estate and infrastructure investment advisory.

    Ms. Ma holds a Bachelor Degree in Business Economics from the University of Nottingham Ningbo China and MBA from the University of Hong Kong. She is also a CFA charter holder.

Overseas Infrastructure Fund

Tel (852) 2905 0854
Fax (852) 2529 0177
Email Kelvin.poon@everbright.com
Address 41/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong