Infrastructure networks contained in "corridors" are the backbone of modern society. Infrastructure facilitates the growth and prosperity of American businesses, communities and individuals.
Our quality of life and progress as a nation depend on being able to turn on the lights, heat and cool our homes, and have quality drinking water. Corridor's targeted real infrastructure assets--pipelines, wires, and storage facilities--support the growth of the U.S. economy and provide stable, long-term investments.
Targeted Asset Characteristics
We anticipate that our targeted real property asset acquisitions
will have the following characteristics.
Long-Life Assets with Stable Cash Flows
and Limited Commodity Price Sensitivity.
We will seek real property assets having the potential to generate stable cash flows over long periods of time. In most cases, we expect the term of the lease will match the projected asset life. We anticipate our real property assets will generate contracted cash flows with third party entities over the term of the investment, thus providing stable cash flows underlying our leases.
Experienced Management Teams with Energy Infrastructure Focus.
We have targeted assets operated by management teams that have a track record of success and that have substantial knowledge and focus in particular segments of the energy infrastructure sector or with certain types of assets.
Fixed Asset-Intensive Investments.
Fixed-asset investments characteristically display such attributes as long-term stability, low volatility, diversification via low correlation and relatively inelastic demand.
Limited Technological Risk.
We generally do not target acquisition opportunities involving the application of new technologies or significant geological, drilling or development risk.
Growth Opportunities.
We generally will seek to enter into leases that provide base rent and participating rent over the term of the lease. These increases are expected to be fixed or tied generally to increases in indices such as the Consumer Price Index ("CPI").
Operating Partner Characteristics
Corridor selects operating partners with a longstanding track record of success measured by quantitative and qualitative achievement. Our team's extensive experience as energy operators qualifies us to complete due diligence on each new asset acquisition: from the quality and maintenance of the physical property, to the business's operational strategy, to the qualifications of the management team. We leverage our experience managing public and private investments in energy infrastructure to meet our investors' goals of stable cash flows and low-risk assets.
Our investment approach emphasizes overall asset operational and financial performance with the potential for enhanced returns through incremental asset growth, capital appreciation and minimization of downside risk.
Our process involves:
- Assessment of the overall energy subsector in which the asset is operated
- The operating company's specific competitive position
- Operational asset engineering due diligence
- Potential commodity price, supply and demand and regulatory concerns
- The stability of the asset's cash flows
- The prospective operating company's management track record
- Our ability to structure an attractive investment