AllianzGI introduces new high yielding infrastructure credit strategy
Allianz Global Investors (AllianzGI) is launching the Allianz Resilient Opportunistic Credit (AROC) strategy.
The company says the new strategy is a natural extension of its existing infrastructure debt offering and provides institutional investors with access to the full range of infrastructure debt sectors, ranging from “core” infrastructure (eg regulated utilities) to “core++ / value-add” infrastructure (eg next generation energy technology).
AROC will seek a target portfolio average credit profile of B+ and will invest in real assets, focussing on capital intensive infrastructure-related businesses with high barriers to entry/exit. The strategy will invest in OECD countries, with a strong focus on the EEA and the UK, and will have an integrated ESG strategy with robust ESG risk mitigation.
This latest offering from AllianzGI’s infrastructure debt platform, which has made in excess of EUR18 billion of investments since 2013, will be led by new hire Tom Lees. Tom joined AllianzGI in January 2021 as Senior Portfolio Manager and has over 17 years’ experience across infrastructure equity, debt advisory, ratings advisory, M&A, leveraged finance and debt capital markets. In his new role, Tom will also be part of the overall infrastructure debt platform and will be responsible for wider origination and execution of transactions as well as a member of all Investment Committees across our infrastructure debt strategies. Tom joins AllianzGI from BNP Paribas and has previously held roles at Borealis Infrastructure (now OMERS Infrastructure), JP Morgan and Dresdner Kleinwort.
The AROC strategy aims to complement AllianzGI’s existing infrastructure debt offering which includes the Allianz Infrastructure Debt Euro Core Fund and Allianz Resilient Credit (ARC) Euro Fund. Both funds reached final close in Q4 2020, with the Euro Core Fund raising EUR745 million and the ARC Euro Fund raising EUR397 million. Allianz Euro Core fund is long duration and provides investment grade stable cash flow primarily for asset liability management of our clients. The ARC Euro fund is much shorter in duration, which targets 8 years and provides investors with the opportunity to diversify their assets with higher yielding but stable infrastructure debt in the cross-over credit spectrum. The new strategy targets a duration of approximately 6 years and further yield enhancement.
Claus Fintzen, CIO Infrastructure Debt at AllianzGI, says: “I am excited by the opportunity to build on the success of AllianzGI’s infrastructure debt platform by establishing this new strategy which completes the credit spectrum.
“The AROC strategy will provide investors with access to the full range of infrastructure debt sectors as well as access to higher yielding infrastructure debt. With this extension of our existing infrastructure debt offering, investors will benefit from AllianzGI’s leading position in infrastructure debt globally and from its reputation, experience, and deal sourcing capabilities.”