What is an MML Keystone investment?
Keystone
The middle stone in the top of an arch that is pivotal in holding
all the other stones in position and forms the basis for a larger structure above.
Building great businesses that address the needs of 21st century society
We Invest in Essential Asset-Backed Businesses
With Privileged Growth Leveraging Secular Tailwinds
Infrastructure fundamentals
- Demand tied to an essential societal need
- Stable cashflows tied to underlying demand
- Prudent capital structures
Proven asset-backed model
- Market leaders with durable, distributed assets
- Proven unit economics yielding strong free cash flow
- Data-driven risk assessment
Privileged position
- Platforms with proven and protected ability to grow
- Competitive moat allows asset expansion at attractive unlevered IRRs
- Realistic to double size
Secular growth drivers
- Aligned with societal megatrends (e.g., circular economy, digitalization)
- Sustainable and beneficial for society
- Demonstrated value to customers and users
Secular growth
21st century infrastructure needs added flexibility to improve lives and the environment. Investments in infrastructure deliver value to society through the
efficient use of resources and taking advantage of technological advances. As a result, these pools of distributed infrastructure assets are a critical
addition to the conventional core infrastructure across a wide range of sectors, supporting a range of megatrends such as:
Macro Tailwinds
Efficient use of assets through reuse, sharing and recycling
Why Distributed?
- Assets need to be able to be used by multiple users
- Often mobile assets
- Platform for management
Macro Tailwinds
Essential social services “in the community” closer to demand
Why Distributed?
- Require location “in the community” closer to demand
- Social drive for “de-institutionalisation”
Macro Tailwinds
Increased productivity from digital, IoT and smart services
Why Distributed?
- Relatively small assets close to the end user
- Demand for low latency as more mission critical
Macro Tailwinds
Enabling the decarbonisation of the economy
Why Distributed?
- More demand for new assets for electrification
- Most efficient to manage volatility close to point of consumption
