Income with Limited Volatility
Private Income
The Private Income strategy is designed to deliver attractive returns with a high level of income to the Fund while minimizing volatility. It invests across infrastructure, private credit, and other income-generating assets, with a strong emphasis on downside protection. By focusing on stable, cash-flow-producing opportunities, the strategy seeks to contribute consistent returns to the Fund, supporting its long-term financial goals while managing risk prudently.
At a Glance
Key Portfolio Figures
10%
FY26 Target Allocation
$7.8B
as of June 30, 2025
Focused Areas of Investment
Sub-Portfolios
Infastructure
Infrastructure investments are often long-lived and have inflation protection characteristics. APFC invests primarily through funds, direct investment, and co-investment in a portfolio of assets that is diversified by geography and sector. These assets include power generation, midstream energy, transportation, water and waste, telecommunications, and other infrastructure.
Private Credit
Private Credit investments often generate high current income. APFC invests through funds and co-investments into a portfolio of assets that is diversified by strategy, industry, and geography. These strategies include direct lending, mezzanine lending, distressed/opportunistic credit, asset-based lending, and other strategies. While the portfolio is currently focused primarily on the U.S., the team evaluates opportunities globally.
Income Opportunities
Income Opportunities investments are designed to capture attractive, adjacent opportunities that do not fit into the Private Credit or Infrastructure portfolios. The portfolio includes investments targeting asset leasing, liquidity solutions, and mineral royalty and finance, among others. APFC continually evaluates opportunities created due to economic, regulatory, and relative value anomalies.
Private Income's Objectives
Performance
The performance target for the Private Income portfolio is a real return of CPI + 4.0%. The lifecycle of Private Infrastructure and Income Opportunities investing, which can be similar in structure to private equity, will, in many circumstances, contribute to an uneven return profile or J-Curve phenomenon for investments early in their respective lifecycles.
Performance reports for the portfolio can be found in the monthly performance reports and in board meeting packets.
External Manager Expertise
The Private Income portfolio partners with external managers to leverage their specialized expertise to identify unique opportunities that benefit the portfolio. This approach allows the asset class to perform consistently across infrastructure, credit, and special opportunities.
Strategy & Focus Area
Private Income Mandate
The Private Income strategy invests in a broad range of strategies covering infrastructure, other private real asset investments (such as timber and hard asset leasing), private credit, opportunistic/distressed credit and other private market investments that provided income generation to the Fund. We target assets and strategies that provide a combination of principal protection, current income (e.g. interest payments or dividends), inflation mitigation and equity upside. We target an absolute return in excess of CPI + 4%, but evaluate each opportunity on the expected return, relative to the risks we are taking.