HICL Infrastructure: Strategy update - seeking to hit all the right notes

Research evidence excerpt

HICL Infrastructure: Strategy update - seeking to hit all the right notes

Equity Research

European Investment Companies

2 July 2026

HICL Infrastructure

Strategy update - seeking to hit all

the right notes First Look

HICL’s strategy update targets a step‑change in returns (10% HICL.L/HICL LN OVERWEIGHT

NEUTRAL+) while preserving its income appeal, funded through EuropeanCompaniesInvestment

Price Target GBp 135disciplined capital recycling and a tilt to higher‑growth

assets. Progress on exits over since 2023 (£1bn+, 11% Price (01-Jul-26) GBp 133 Potential Upside/Downside +1.5%

Source: Bloomberg, Barclays Researchpremium to book value) provides comfort on execution.

The strategy update addresses key investor priorities: preserving an attractive income European Investment Companies

profile, allocating capital to higher‑return opportunities, and maintaining disciplined Conor Finn, CFA

+44 (0)20 7116 6066capital deployment. While further detail is due later today, we expect the initial reception

conor.finn@barclays.com

to be broadly positive. Longer term, the share of capital directed to dividends may decline,

Barclays, UK

though this is likely gradual given the current portfolio mix.

Material increase in total return target: HICL will target a 10%+ total return over the medium-

term (vs the 7-8% IRR target set at IPO and 8.5% achieved to date). The new return target is at

the upper end of the range for total return focused infrastructure funds (Figure 1). The company

expects to deploy £1.6bn over the next five years across dividends, new investments and

buybacks. This will be funded by operating cash flows and capital recycling. New investments

will include higher growth "enhancer" assets (up to 20% of the portfolio over the medium term)