Newcore Capital’s CEO features on PE in a Pod – The case for socially responsible infrastructure investment

In a recent episode of PE in a Pod, Newcore’s CEO Hugo Llewelyn shares his perspective on investing in social infrastructure and why a more responsible approach to capital is essential for long-term success.

Hugo defines social infrastructure as “the services that are essential to the ongoing running of society and the physical real estate assets that enable them to happen,” spanning sectors from healthcare and education to regeneration and transport. Newcore’s strategy centres on owning these underlying property assets and leasing them on long-term contracts to operators, providing stability and resilience across critical services.

A key theme of this discussion is the importance of long-term thinking in capital allocation. Hugo contrasts Newcore’s approach with more short-term, highly leveraged models seen across parts of the infrastructure market, particularly in sectors such as water. He highlights how excessive leverage and underinvestment have led to systemic issues, noting that “when leverage is that high, you start to use all your cash flow to pay your interest… instead of providing the critical capex that was needed.”

For Hugo, responsible investment is not at odds with performance. It is quite the opposite. “You make more money in the long term by having a courteous approach and an ethical approach, looking after all your stakeholders,” he explains, pointing to Newcore’s track record of consistent outperformance. He also emphasises the importance of governance, arguing that ethical capital management starts with behaviour: “Ethical governance is about paying your tax. Pure and simple.”

The conversation also explores the role of public-private partnerships. Hugo is clear in his critique of traditional PFI structures, describing them as “the poorest value for government and the taxpayer” due to their inflexibility and lack of genuine risk transfer.

Instead, he advocates for simpler, more transparent models – either direct public investment supported by private sector expertise, or long-term leasing arrangements where risk and responsibility are clearly defined.

Hugo concludes by outlining Newcore’s dual strategy: developing new social infrastructure where it is needed most, while also investing in and improving existing assets. With approximately £700 million in assets under management – expected to reach £1 billion – and a focus on low leverage, the firm continues to prioritise resilience, long-term value and positive societal impact.

Newcore would like to thank Jonathan Braude for hosting the discussion and for the opportunity to share these perspectives on PE in a Pod.

Listen to the full podcast at the link below: