About MIC

MIC owns, operates and invests in a portfolio of infrastructure and infrastructure-like businesses in the U.S.

The businesses MIC owns and operates are organized into two core segments:

• Atlantic Aviation: a provider of fuel, terminal, aircraft hangaring and other services primarily to owners and operators of general aviation (GA) jet aircraft at 70 airports throughout the U.S.; and
• MIC Hawaii: comprising an energy company that processes and distributes gas and provides related services (Hawaii Gas) and several smaller businesses collectively engaged in efforts to reduce the cost and improve the reliability and sustainability of energy in Hawaii.

Infrastructure businesses are the providers of the basic, often essential, services, facilities and technology upon which the growth and development of a modern community depends. MIC offers investors an opportunity to participate in the ownership of such businesses.

MIC also invests in the development of new businesses. New businesses may be added to an existing segment or sold, or may, over time, form the basis of entirely new segments.

Introduction to infrastructure

MIC’s businesses are the providers of basic, often essential, services, facilities and technologies upon which the growth and development of a modern community depends. Infrastructure businesses tend to be large scale and capital intensive. They employ long-lived, high-value physical assets that serve, in part, to create a privileged position in their respective markets. These attributes also serve to protect operating margins throughout market cycles, enabling MIC to produce generally growing levels of cash flow. 

Other characteristics of the businesses include:

• Operations in a regulated or contractual framework;
• Ownership of physical assets that are difficult to replicate or substitute around;
• Operations that are a platform for the deployment of growth capital;
• Broadly consistent demand for their services;
• Scalability, such that relatively small amounts of growth can generate disproportionate increases in earnings before interest, taxes, depreciation and amortization, (EBITDA);
• Generally favorable competitive positions, largely due to operations in sectors with high barriers to entry, which create sustainable competitive advantages; and
• Generally predictable maintenance capital expenditure requirements

In addition to the benefits associated with these characteristics, the rate of growth in revenues and/or gross profit generated by most of the businesses tends to keep pace with historically normal rates of inflation. The price escalators built into many customer contracts, and the inflation and cost pass-through adjustments that are typically included as part of pricing terms, serve to insulate the businesses to a significant degree from the negative effects of inflation and commodity price risk.