[Interview] Global Infrastructure Investor Bobong: "European Mid-Market Offers Both Stability and Profitability"

Growth as an Independent Brand from the Natixis Group...
"Focus on Mid-Market Infrastructure Investment"
"Europe's Prominence Rises After the Second Trump Administration"

"Infrastructure investment has demonstrated remarkable resilience amid various shocks such as the COVID-19 pandemic and the Russia-Ukraine war. Because the returns on infrastructure assets naturally reflect inflation rates, infrastructure offers superior protection against inflation compared to other investment assets."

These are the words of Gwenola Chambon, CEO of Bobong Infrastructure Partners (Bobong). Bobong is an asset management company headquartered in France, with assets under management (AUM) across Europe totaling approximately 9.8 billion euros (about 16 trillion won). In just five years since its establishment, its AUM has grown nearly fourfold. To date, the firm has invested in more than 70 infrastructure assets and has collaborated with over 100 global investors through eight funds. Bobong also operates overseas branches in Luxembourg, New York, and Munich.

Gwenola Chambon, CEO of Bobong Infrastructure Partners (right), and Mounir Corm, Vice CEO, are being interviewed by Asia Economy at the Fairmont Hotel in Yeouido, Seoul on the 24th of last month. Photo by Kim Daehyun

Asia Economy met with CEO Chambon and Vice CEO Mounir Corm at the Fairmont Hotel in Yeouido, Seoul on the 24th of last month to discuss infrastructure investment strategies, market trends, and the ecosystem of the Korean infrastructure market.

CEO Chambon described Korean investors as "pioneers who have invested in the infrastructure asset class from the early stages," adding, "Because they demonstrate a highly sophisticated and skilled approach, I visit Korea twice a year to discuss investment directions." Vice CEO Corm also explained, "About 10% of Bobong's total AUM comes from Korean investors, which is evidence that the Korean LP (limited partner) community strongly supports our strategy."

Growth as an Independent Brand from the Natixis Group... "Focus on Mid-Market Infrastructure Investment"

Bobong has been exclusively responsible for infrastructure investment within France's global investment bank Natixis since 2005. Recognized for the importance of the market and its performance, Bobong was officially launched as an independent brand within the group in 2019. Its main investment areas include: ▲ 'Social infrastructure' based on PPPs (public-private partnerships) such as schools and hospitals ▲ 'Energy transition infrastructure' such as renewable energy and power grids ▲ 'Digital infrastructure' such as fiber optics, data centers, and towercos ▲ 'Transport infrastructure' such as highways, subways, parking lots, and airports.

From its founding, Bobong has adhered to ESG (environmental, social, and governance) and sustainability principles, which have continued as the company's 'Long-Term Hold' investment philosophy. CEO Chambon noted, "Of Bobong's 80 team members, 29 have become co-shareholders, strengthening this philosophy," and added, "We work directly with industrial and public sector partners to develop and own infrastructure. This is not simply about acquisitions and disposals, but about long-term development partnerships based on trust."

Accordingly, Bobong has recently completed investments in a biomethane plant in the Netherlands and acquired a portfolio of wind power plants in Northern Europe. Last year, the company also established its own think tank, 'Infravision.'

Another core investment strategy is Bobong's early focus on the 'mid-market infrastructure' sector. Mid-market infrastructure typically refers to projects ranging from about 500 million to 1 billion euros (approximately 740 billion to 1.48 trillion won). Compared to large-scale infrastructure, this allows for direct participation in infrastructure development at a lower price, enabling the company to maintain a low debt ratio. At the same time, there is significant potential to increase asset value in the future. CEO Chambon stated, "Large-scale infrastructure projects have the disadvantage of a limited pool of buyers due to their high valuations and are highly politically sensitive. In contrast, the mid-market is much more segmented in terms of market opportunities and accounts for the majority of overall infrastructure investment opportunities."

She added, "Most importantly, this year investors are shifting their focus from large-scale infrastructure to the 'mid-market.' As a result, an approach that involves developing infrastructure together over the long term and enhancing its value is securing more exclusive investment opportunities."

"Europe's Prominence Rises After the Second Trump Administration"

Chambon also emphasized the trend of Europe becoming the center of the global infrastructure market following the second Trump administration. She first pointed out, "Europe has a strong regulatory framework and a long history of infrastructure financing, providing a stable environment in which investors are protected from political changes."

She continued, "Due to the need to secure energy sovereignty and achieve energy transition goals, demand for infrastructure investment has surged. The European Union (EU) is implementing large-scale investment programs such as the 'Fit for 55' policy, which aims to reduce carbon emissions by 55% by 2030, and Germany has also approved its own infrastructure investment program."

Gwenola Chambon, CEO of Bobong Infrastructure Partners (right), and Mounir Corm, Vice CEO, are being interviewed by Asia Economy at the Fairmont Hotel in Yeouido, Seoul on the 24th of last month. Photo by Kim Daehyun

Vice CEO Corm explained, "Europe accounts for about 50% of global infrastructure investment opportunities. Above all, it boasts a robust regulatory system and a long track record of proven results. Investors who previously allocated significant amounts to U.S. infrastructure are now shifting their focus to Europe, being mindful of volatility issues after the Trump administration. Currently, the U.S. is facing high political and economic volatility, whereas Europe is increasingly favored for its stability."

In addition, CEO Chambon said, "For Korean insurance companies as well, infrastructure investment is a highly advantageous asset because it helps reduce the capital ratio burden required by regulators. Infrastructure investment is not simply about asset acquisition, but a process of value creation from a long-term perspective. We look forward to continuing our partnership with Korean investors and growing together in the future."