CVC DIF Shifts from Refinancing to Revenue Optimisation as High Rates Transform Infrastructure Value Creation

Angela Rocha, Partner at CVC DIF, shares her thoughts on value creation in the higher interest rate environment, revenue and cost optimization strategies, and the increasing importance of geopolitical risk management.

Interviewed at IPEM Cannes 2025, Rocha provides specific examples of how regulatory changes, trade policies, and global conflicts directly impact infrastructure investments.

CVC DIF is the infrastructure strategy of the CVC Group, managing €19 billion across energy transition, digital infrastructure, and transport and utilities.

Key Points from the Interview:

• Strategic pivot from refinancing to operational value creation: With refinancing to create value much harder in a high interest rate environment, CVC DIF has shifted the focus of its value creation toolkit to revenue and cost optimization. Examples of this are price increases and sales team and marketing strategy changes to drive up ARR and subscriber numbers in its fibre and data centre businesses, and improving energy efficiency to reduce operating costs.
• AI creating dual opportunities in infrastructure investing: AI is driving increased demand for data centre capacity and renewable energy through corporate power purchase agreements, benefiting CVC DIF’s portfolio companies. It also serves as an operational improvement tool within portfolio companies. An exercise in a French water company identified more than 60 value creation levers — 70% of which were focused on revenue optimization and 30% on cost reduction.
• Geopolitical risks manifesting across three key areas: CVC DIF has increasingly focused on geopolitical risk in IC and partner discussions. These risks include immigration policies, which affects student accommodation occupancy rates within its portfolio through things such as enrolment caps implemented in Australia. It also considers risks within trade and regulation, for example the impact on the EV space through subsidy changes, and conflict, which has caused higher energy prices post-Ukraine war.
• Strategic positioning to mitigate regulatory volatility: The firm is adapting to policy uncertainty, for example, its EV charging companies are focusing on the predictable business-to-business fleet segment rather than volatile consumer market. It is alsoimplementing energy efficiency measures across high-consumption portfolio companies to reduce exposure to energy price fluctuations.
• Infrastructure resilience validated through crisis periods: Despite new challenges, Rocha emphasized infrastructure's fundamental resilience across the economic cycle, with the asset class demonstrating its ability to adapt and maintain performance through changing macroeconomic and geopolitical conditions.