PRIVATE INCOME

INFRASTRUCTURE, PRIVATE CREDIT, INCOME OPPORTUNITIES

The Private Income strategy aims to provide the Fund with a high level of income and limited volatility, through investments in infrastructure, private credit and other income producing assets. Across the portfolio, investments should offer a significant level of downside protection.

KEY PORTFOLIO FIGURES

$7.8B

as of June 30, 2025

10%

FY26 target asset allocation

MANDATE

Strategy

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.

Infrastructure
Infrastructure investments are often long-lived, with inflation protection characteristics. APFC invests primarily through funds, direct investment and co-investment into a portfolio of assets that is diversified by geography and sector. These assets include: power generation, electric utility, midstream energy, transportation, water and waste, telecommunications, and other infrastructure.
Private Credit

Private Credit investments are often assetbacked and generate high current income.
The APFC invests through funds 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 in the U.S., we evaluate opportunities globally.

Income Opportunities

Income Opportunities investments are designed to capture attractive, sometimes fleeting, opportunities that do not fit into the Private Credit or Infrastructure portfolios. The portfolio includes investments such as investments targeting life settlements, liquidity solutions, and mineral finance among others. We continue to evaluate opportunities that are created due to economic, regulatory, and relative value anomalies.

Select Investments

In 2019, APFC invested alongside LS Power in a portfolio of battery energy storage assets in California. In 2021, those assets were combined with other renewables assets of LS Power to create Rev Renewables, an industry leader in the development, acquisition, and operation of energy storage and renewable projects.
In June 2014, APFC formed American Homes 4 Rent II, LLC with American Homes 4 Rent (NYSE: AMH), a leader in the single-family home rental industry, to acquire, renovate and lease residential properties.
In September 2015, APFC joined with several institutional investors to form a joint venture with the goal to own and sustainably manage a portfolio of U.S. timberlands. The portfolio consists of properties in the Southern U.S., which are primarily pine plantations that serve a variety of customers and forest product markets.

PERFORMANCE

The performance target for the Private Income portfolio is a real return of CPI + 4.0%. The life-cycle 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 phenomena for investments early in their respective life-cycle.

Performance reports for the portfolio can be found in the monthly performance reports and in the board meeting packets.