While many asset managers wax lyrical about responsible investment or ESG it is hard to imagine a more complete embodiment of such considerations than the business that Martin Stanley has nurtured in Macquarie Infrastructure and Real Assets (MIRA). His business does not just assess the work of others but gets its hands dirty on the front line – all the while returning healthy returns to investors.

Infrastructure is a fashionable asset class at the moment, not least among pension schemes desperately seeking yield. But taking a me-too approach does not breed success in this business – it takes the commitment of time and resources to build trust and real-world partnerships.

“They are all long-term assets that require a responsible, long-term approach to management. All of the sectors we invest in touch people’s lives in very meaningful ways,” says Stanley. “We have an important role with respect to our responsibility to the community and environment. The people that operate within our business really contribute to the communities in which they work.”

The differentiator with traditional private equity is the impact on people’s lives if things go wrong with an infrastructure project. Every investment represents a reputational risk to the firm: “Our brand is at risk and we need to take that seriously – which we certainly do.”

Stanley’s ethos permeates the firm, providing opportunity and in return expecting responsibility and accountability from the 500 people working for him in teams scattered around the world. But, most of all, personal integrity is demanded from everyone that represents the Macquarie brand.

The “the public interest test” is central to infrastructure investment. “Governments want to make sure that the people that buy these assets are responsible long-term investors that are going to leave the asset in better condition than when they acquired it. The way we are seen – as careful custodians of strategic infrastructure – is responsible for a lot of our deal flow.”

It is probably fair to say that some of these things can easily get lost if a firm takes on an asset with the intention of flipping it in three years – something that will not go unnoticed by other governments seeking investment partners.

“It is a long-term, responsible, ethical investment philosophy,” he says. “There are a lot of people involved. You have got to be acceptable to the worker councils, unions and so on. We are going to be there a long time so have to make sure we have good standards of care.”

Stanley had 20 years of experience in power generation and utilities before joining Macquarie and his staff is a mixture of those with financial and operational experience.

Stanley expresses a personal preference at the moment for investment in Asia as “it is the place with the best risk-adjusted returns and the deal flow is the strongest”. 

But he is also enthused because of “the impact that you can have on communities in that part of the world is so significant. Sometimes I look at what we have done – in places such as India, China or the Philippines – and realise we have made a real difference and something to be proud of. It gives me a huge buzz.”

Upcoming investments in a mass transit system in Manilla and clean water projects in China certainly combine these attributes. 

Likewise, in India, MIRA invested heavily and profitably in the motorway network but also brought in the Macquarie Foundation (in partnership with the charity Let There Be Light) to provide solar-powered lighting on the hazardous footpaths adjacent to its work. It was an initiative pushed through by the Macquarie team on the ground in India and reflects how deep the company philosophy runs.

It proves that returns do not need to be sacrificed when ethical considerations are taken seriously. Stanley is no rogue bleeding-heart; he is a hard headed professional with an excellent track record. He is a credit to asset management and a thoroughly deserving winner of our CEO of the year award.