HICL Infrastructure: CMD takeaways: Considered, credible and well capitalised for delivery

Research evidence excerpt

HICL Infrastructure: CMD takeaways: Considered, credible and well capitalised for delivery

Equity Research

European Investment Companies

3 July 2026

HICL Infrastructure

CMD takeaways: Considered,

credible and well capitalised for

HICL.L/HICL LN OVERWEIGHTdelivery

European Investment NEUTRAL

HICL presented a coherent case for increasing exposure to Companies Price Target GBp 135

higher-growth assets, supported by a strong balance sheet Price (02-Jul-26) GBp 133

and a track record of capital recycling. The shift represents a Potential Upside/Downside +1.5% Source: Bloomberg, Barclays Research

measured evolution in strategy. We believe the main risk lies

in deploying into an increasingly competitive environment. European Investment Companies

Conor Finn, CFA

+44 (0)20 7116 6066

The following companies are privately held and are not under coverage by Barclays Research: conor.finn@barclays.com

Affinity Water, FortySouth and London St Pancras High Speed. Information about these companies Barclays, UK

is being provided for information purposes only and is not an investment recommendation by

Barclays Research.

HICL presented a clear and compelling strategic rationale for its shift towards higher-

growth assets, in our view. Ultimately, core infrastructure will remain the dominant part of

the portfolio, with up to 20% to be allocated to higher-risk enhancers (control positions in

mid-market assets with more exposure to greenfield development) over ~5 years. Overall,

we expect shareholders to be supportive of the thesis. Crucially, the strategy pivot is being

made from a position of strength with ~£300m of cash on the balance sheet and strong

operating performance across the portfolio. Available cash covers approximately half of