32
infrastructure
investor
may
2014
KEYNOTE INTERVIEW
we understood the business plan well in
advance, we knew the asset well by the time
the auction came along,” explains Day.
Day is also keen to stress the opportu-
nities that arise fromassets that are already
owned by the firm, which he thinks is not
well appreciated as a deal source. “For
example,” he says, “there has been a lot
of expenditure at [portfolio asset] Perth
Airport. Around half of our investment
over the last 10 years has come through
organic opportunities and they are assets
we know extremely well and provide cer-
tain investment flow. It alsomeans we can
access investment opportunities no-one
else can access.”
The whole investment team has a
say in purchasing assets. Day says he sees
Hastings as much more of a partnership
culture than a hierarchical model, where
joint accountability for performance exists.
In order to encourage a “performance
driven” approach, Hastings introduced
a Long-Term Incentive Plan in 2011
through which 21 percent of the com-
pany is currently owned by its staff – with
the possibility of this rising eventually to
30 percent.
‘LIKE AN INDEPENDENT’
The remaining stake is held by Westpac,
the Australian bank which bought a 51
percent interest in Hastings in 2002 and
then acquired the remainder in 2005. Day
describesWestpac – one of Australia’s “big
four” banks – as a “strong and supportive
organisation”. He adds: “They are not
involved in the investment decisions so
it’s like being an independent.”
The bank has also aided Hastings’
international growth as well as being
tapped for some of the firm’s leading
executives: for example, infrastructure
debt trio Steve Rankine, Tim Cable and
Nick Cleary all previously worked at West-
pac; as did director Andrew Faber, who
worked on the Sydney Desalination deal.
With the clock now ticking and meet-
ings beckoning, there’s just time to ask
Day about a recent innovation – Hast-
ings’ “investor day”, the inaugural version
of which was held six months ago at the
firm’s headquarters inCollins Street, Mel-
bourne’s main thoroughfare. The event
was designed to emphasise the firm’s
appreciation of the need for alignment
of interests.
“The CEOs of the operating compa-
nies came to speak to our investors so they
could understand more about what the
companies do,” recalls Day. “It was about
joining the investors and the investments
inorder to ensure transparency and it will
be an annual event from now on.”
The firm will be hoping that, if it can
successfully communicate its message,
these events will become populated with
a growing number of investors. That, in
turn, would vindicateDay’s determination
to spread the word globally.
“Theworld is about cross-border capital
flows and that’s why we have to be interna-
tional,” Day reflects. One senses it won’t
be long before he is boarding his next
flight.
n
Established:
1994
Headquarters:
Melbourne
Funds under management:
A$7.2bn (30 June 2013)
Target sectors:
Utilities, airports, toll roads, seaports
Strategies:
Equity and debt investments in privatisations, PPPs, secondary
market transactions, follow-on investments
Total employees:
95
Senior executives include:
Andrew Day
(chief executive);
Colin Atkin
(executive director)
; Richard Hoskins
(executive director)
;
Peter Johnston
(executive director)
; Irene Mavroyannis
(executive director)
;
Valeria Rosati
(executive director)
; Peter Taylor
(executive director)
Hastings at a glance
Source
: Hastings Funds Management
