Exhibit 99.1
Net Asset Value
We calculate net asset value per share in accordance with valuation policies and procedures that have been approved by our board of directors. Our transactional net asset value (“Transactional Net Asset Value”) is the price at which we sell and repurchase our shares. Our GAAP net asset value (“GAAP Net Asset Value”) is our net asset value determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The following tables includes the net asset value of outstanding shares as of July 31, 2023. The following table provides a breakdown of the major components of our Transactional Net Asset Value as of July 31, 2023 ($ in thousands, except shares):
Components of Transactional Net Asset Value | July 31, 2023 | |||
Investments at fair value (cost of $444,013) | $ | 479,772 | ||
Cash and cash equivalents | 7,635 | |||
Other assets | 13,628 | |||
Other liabilities | (24,703 | ) | ||
Accrued performance participation allocation | (1,453 | ) | ||
Management fee payable | (449 | ) | ||
Accrued shareholder servicing fees and distribution fees(1) | (230 | ) | ||
|
| |||
Transactional Net Asset Value | $ | 474,200 | ||
|
| |||
Number of outstanding shares | 18,068,487 | |||
|
| |||
| (1) | Shareholder servicing fees apply only to Class S, Class U, Class D and Class R-D shares. Distribution fees apply only to Class S shares and Class U shares. For purposes of Transactional Net Asset Value, we recognize shareholder servicing fees and distribution fees as a reduction to Transactional Net Asset Value on a monthly basis as such fees are accrued. For purposes of GAAP Net Asset Value, we accrue the cost of the shareholder servicing fees and distribution fees, as applicable, for the estimated life of the shares as an offering cost at the time we sell Class S, Class U, Class D and Class R-D shares. As of July 31, 2023, we have accrued under GAAP $22.2 million of shareholder servicing fees and distribution fees payable to the dealer manager related to the Class U and Class D shares sold. |
The following table provides a breakdown of our total Transactional Net Asset Value and our Transactional Net Asset Value per share by class as of July 31, 2023 ($ in thousands, except shares and per share data):
Transactional Net Asset Value Per Share | Class U Shares | Class R Shares | Class D Shares | Class I Shares | Class E Shares | Class F Shares | Class G Shares | Class H Shares | Total | |||||||||||||||||||||||||||
Monthly Transactional Net Asset Value | $ | 191,828 | $ | 129,474 | $ | 50 | $ | 27 | $ | 152,727 | $ | 92 | $ | 1 | $ | 1 | $ | 474,200 | ||||||||||||||||||
Number of outstanding shares | 7,331,768 | 4,945,869 | 1,912 | 1,033 | 5,784,361 | 3,464 | 40 | 40 | 18,068,487 | |||||||||||||||||||||||||||
Transactional Net Asset Value per share as of July 31, 2023 | $ | 26.16 | $ | 26.18 | $ | 26.18 | $ | 26.18 | $ | 26.40 | $ | 26.46 | $ | 26.46 | $ | 26.46 | ||||||||||||||||||||
Reconciliation of Transactional Net Asset Value to GAAP Net Asset Value
The following table reconciles GAAP Net Asset Value to our Transactional Net Asset Value ($ in thousands):
| July 31, 2023 | ||||
GAAP Net Asset Value | $ | 452,233 | ||
Adjustment: | ||||
Accrued shareholder servicing fees and distribution fees | 21,967 | |||
|
| |||
Transactional Net Asset Value | $ | 474,200 | ||
|
| |||
Valuation Methodologies and Significant Inputs
The following table presents additional information about valuation methodologies and significant inputs used for Infrastructure Assets that are valued at fair value as of July 31, 2023:
Valuation Methodology | Unobservable Input(s) (1) | Weighted Average (2) | Range | |||
Inputs to market comparables, discounted cash flow and transaction price/other | Illiquidity Discount | 5.0% | 5.0% - 5.0% | |||
| Weight Ascribed to Market Comparables | 16.6% | 0.0% - 25.0% | ||||
| Weight Ascribed to Discounted Cash Flow | 83.4% | 75.0% - 100.0% | ||||
| Weight Ascribed to Transaction Price/Other | 0.0% | Not applicable | ||||
Market Comparables | Enterprise Value / Forward EBITDA Multiple | 10.5x | 10.1x - 10.8x | |||
Discounted Cash Flow | Weighted Average Cost of Capital | 8.4% | 6.8% - 10.1% | |||
| Enterprise Value / LTM EBITDA Exit Multiple | 10.3x | 9.5x - 11.5x |
| (1) | In determining the inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies, and company-specific developments including exit strategies and realization opportunities. The Company’s manager (the “Manager”) has determined that market participants would take these inputs into account when valuing the investments. “LTM” means Last Twelve Months. |
| (2) | Inputs are weighted based on fair value of the investments included in the range. |
The Manager is ultimately responsible for our net asset value calculations.
Valuations involve subjective judgments and may not accurately reflect realizable value. The assumptions above are determined by the Manager and reviewed by our independent valuation advisor. A change in these assumptions or factors would impact the calculation of the value of our assets. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our asset values:
Input | Hypothetical Change | Infrastructure Asset Values | ||
Weighted Average Cost of Capital | 0.25% decrease | +2.77% | ||
| 0.25% increase | -2.24% |
2