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Huegin helped define a capital investment framework that met the competing needs of all stakeholders

Capital Project Selection: Optimising the Investment mix

After a period of rapid growth through acquisition, a diversified infrastructure asset management firm was changing its focus to increasing shareholder value through internal capital investment.

With more than $8.0 billion in assets under management across three continents, varied operational priorities, and significant disparities in organisational maturity, the task of identifying and selecting the best possible capital investment mix had become quite complex.

Huegin was approached to standardise and streamline the capital investment process and provide the executive management team with decision support in deriving an optimal capital investment portfolio for shareholders. The client had investigated commercial off-the-shelf portfolio optimisation systems and found that the capability available lacked the required tailoring and sophistication.

Huegin’s experience in various infrastructure sectors was used to help the client define a capital investment framework that met the competing needs of all stakeholders in the investment process. Huegin also developed a custom software suite to support the new investment framework, meeting the requirements of the client without compromising on the quality of the output. This software suite allows the client to manage the entire capital investment process from business case through to final portfolio choice. Crucially, the client now has sufficient decision support to ensure that they can identify the optimum portfolio for a given level of expenditure.