Building more resilient infrastructure

Resilient, well-managed and sustainable infrastructure has rarely been more important. Rising geopolitical tensions, regional conflicts, pressure on public finances and the growing physical impacts of climate change have reinforced the need for reliable infrastructure systems that support communities and economies every day. Most recently, instability in the Middle East has again highlighted the strategic importance of energy security and dependable domestic supply chains.

At the same time, demand for infrastructure investment continues to grow. Ageing assets require replacement and modernisation, while urbanisation, population growth and the rapid expansion of AI and data centres are increasing pressure on transport, utilities, digital infrastructure and power networks. Climate adaptation requirements are also driving significant investment across water, energy and transport infrastructure.

At Ancala, we are committed to supporting a more sustainable future through our investment activity, our actions and our partnerships with portfolio company management teams. We believe in investing to create stronger, more resilient infrastructure businesses capable of delivering for their communities long into the future.

Infrastructure fit for the future

I’m pleased to report that Ancala and our portfolio companies continued to perform strongly during 2025. As highlighted in our recent annual performance update, Ancala deployed nearly €800 million into critical mid-market infrastructure opportunities during the year through new investments, follow-on funding and bolt-on acquisitions. This included new fund investments in US-based short line rail specialist Phoenix Rail, Irish telecom towers platform TorLoc Towers, modular infrastructure solutions firm MUCH Gruppe and US-based chemical pipeline business Valentra.

We also helped our portfolio companies to complete six bolt-on acquisitions, including German smart metering platform Hausheld Group’s acquisitions of Mako 365 and GreenPocket, and Avincis’ acquisition of KN Helicopters, a specialist offshore wind farm services business.

Our proactive asset management approach continues to drive performance across the portfolio. In 2025 alone, Ancala portfolio companies increased revenues by an average of approximately 9%, significantly outperforming broader EU economic growth. Since Ancala first invested, our portfolio company revenues have increased by more than 90% on average. Alongside this, we have continued to provide significant follow-on funding to support expansion projects and operational improvements.

Aligning ESG with value creation

Ancala integrates ESG considerations throughout the investment lifecycle, working closely with portfolio companies to identify risks and opportunities, strengthen governance, improve operational resilience and support long-term value creation.

During the year, we enhanced our climate change and biodiversity analysis capabilities, ESG reporting processes and sustainability engagement programme. We continued to support portfolio companies with initiatives including materiality assessments, decarbonisation planning, energy transition initiatives, ESG strategy development and annual reporting, while onboarding new investments into our ESG framework.

Portfolio highlights

This report highlights a number of examples of how our portfolio companies are delivering operational excellence, sustainability improvements and creating long-term resilience.

Last mile network utility owner and operator Leep Utilities is decarbonising their Media City energy centre through the installation of a thermal storage unit designed to improve efficiency, reduce gas consumption and support future integration of lower carbon technologies. Across the portfolio, companies continued to progress renewable energy generation projects, smart metering rollouts, operational efficiency improvements and broader decarbonisation initiatives that strengthen resilience and support long-term operational performance.

At Avincis, the business expanded its company-wide safety forum to further strengthen collaboration and safety standards across its critical emergency response activities. At Portsmouth Water, the company continues to deliver industry-leading leakage reduction and operational efficiency initiatives. This year’s update shares how they have called on dogs to support their efforts. The business has also reached major milestones in its construction of the UK’s first major new reservoir since the 1980s – a once-in-a-generation infrastructure project that will significantly enhance long-term water resilience in the South East of England.

Alongside sustainability, cybersecurity and operational resilience remain key priorities across the portfolio. During the year, we continued our cybersecurity review programme, working closely with management teams and specialist advisors to strengthen resilience against evolving threats, including those associated with AI-enabled cyber risks.

Greater collaboration

Protecting and nurturing Ancala’s entrepreneurial and collaborative culture remains a key priority. This year, we restructured our annual team members engagement survey to provide more strategic and comparable insights year-on-year and to help us further strengthen the culture that has underpinned Ancala since it was founded in 2010. I’m pleased to report that 87% of team members completed the survey, while 85% of respondents indicated that they would recommend Ancala as a place to work and expect to still be with the firm in three years time.

Close collaboration remains a defining feature of our approach. During the year, we hosted our inaugural Portfolio Company CEO and CFO Forum, bringing together leaders from across the portfolio to share best practices and insights on exit planning, ESG, operational resilience, capex delivery, financing strategy and value creation.

This cross-portfolio collaboration continues to enhance the capabilities of our businesses and reinforces the benefits of Ancala’s integrated asset management model.

A more resilient future

We remain confident that the need for resilient, secure and sustainable infrastructure will continue to grow. As a leading investor in mid-market infrastructure, we are committed to playing our role in this transition through our disciplined investment strategy, proactive asset management approach and commitment to delivering sustainable long-term value for all stakeholders.

Spence’s foreword introduces Ancala’s 2025 ESG Report. You can read the full report, here.