Invest with Allianz globally in private equity
Private Equity: Opportunities through diversification and selection
We believe that private equity is a growing and attractive asset class for institutional investors that seek to create long-term value.
With its active management approach as well as ample opportunities for diversification, we are convinced that the asset class holds its long-term appeal, even in troubled times.
Invest with Allianz
Allianz has a long heritage of investing in private equity, over 25 years Allianz has committed more than EUR 20 billion to building a balanced global portfolio. This makes Allianz one of the largest investors globally with privileged access to investment opportunities.1
Being active in the private equity space since 1996, Allianz Capital Partners (ACP) has helped Allianz to build a balanced global portfolio diversification which is broadly diversified across geographies, sectors, managers and vintage years. This has been achieved through primary and secondary commitments as well as by using co-investments.
Currently, we maintain active investment relationships with in excess of 100 fund managers worldwide. We are a consistent partner and therefore prefer to invest in several generations of funds.
By investing in private equity funds, we spread our investments across a pool of privately owned companies. This diversifies Allianz's portfolio beyond stock market-listed companies.
Furthermore, it offers us the opportunity to invest across a range of company sizes, benefitting from the different investment strategies deployed by various fund managers. At the same time, our global coverage gives us access to different geographic markets and economic cycles.
Overall, private equity fund investments aim to generate a premium over public market returns and attractive risk-adjusted returns with portfolio diversification for our Allianz customers.
Benefiting from ACP’s expertise
Our private equity investment managers are based in Munich, New York and Singapore. While each office has a regional focus, the global team also works together on a variety of transactions and runs a global deal list and investment process.
Broad geographic diversification, local expertise of an investment management team with many years of experience in areas such as consulting, direct investments, M&A, due diligence and structuring, along with a specialized in-house legal team, all help to guarantee the highest possible level of relevant expertise and process reliability.
ACP, investing on behalf of Allianz insurance companies, holds 15th place among the Top 100 Global Investors, according to the ranking of the world’s largest institutional private equity investors produced by the magazine Private Equity International. ACP is the only insurance company and asset manager among the top 15.2
Investment strategy
We invest in private equity funds worldwide, and cover the entire spectrum, from buy-outs to venture capital in both primary and secondary markets. In addition, we are also active in the area of co-investments, whereby we invest alongside our private equity managers.
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Our investment strategy is to find and select only the best fund investment opportunities worldwide. In doing so, our investment professionals seek out the best fund managers in each regional market globally and screen hundreds of funds every year. Opportunities that meet our investment criteria are then subjected to a comprehensive assessment and selection process.
We typically invest in funds whose partners are experienced and have demonstrated a strong historical track record, thus providing a high probability of achieving above-average risk-adjusted returns in the future.
Key criteria used in selecting fund managers include:
- a high-performing team with wide-ranging specialist experience
- a very strong position in the target market
- an excellent track record, proven through successful investments from previous funds
- a strategy and fund size which is commensurate with the team capacity and the market potential
- fund terms that demonstrate a strong alignment of interest with investors
- a responsible approach with regards to environmental, social and governance (ESG) topics.
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Due to our broad market penetration and sizeable portfolio, ACP is in the position to respond quickly with binding prices in secondary market transactions. Our reputation as a respected primary investor and the close business relationships that we maintain with numerous fund managers are greatly beneficial when realizing secondary investments.
In addition, our global reach and financial strength provide us with the resources to support global transactions in a fast and discreet process.
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We are experienced with co-investing in buyout and growth capital transactions. We do not act as a lead investor in these transactions; rather, we invest as a junior partner alongside private equity funds. With this approach, we apply a rigorous but focused evaluation process which guarantees a quick response and certainty of closure once approved.
Beyond our dedicated funds investment expertise, our private equity investment managers call on many years of relevant experience also in the direct investment sector. Thanks to the access to global networks of both our investment managers and the Allianz Group bundled with our direct investment know-how we can furthermore leverage on synergies for our co-investments.
- The performance of the strategy is not guaranteed, and losses remain possible.
- A recent study of Private Equity International in July 2020 put Allianz at no. 15 within the “LP 100” of the most established investors in private equity globally.
Private equity investments are highly illiquid and designed for professional investors pursuing a long-term investment strategy only.
Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Investing in fixed income instruments may expose investors to various risks, including but not limited to creditworthiness, interest rate, liquidity and restricted flexibility risks. Liquidity risk may possibly delay or prevent account withdrawals or redemptions. Past performance is not a reliable indicator of future results. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable at the time of publication. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail.
This is a marketing communication issued by Allianz Global Investors UK Limited, 199 Bishopsgate, London, EC2M 3TY, www.allianzglobalinvestors.co.uk. Allianz Global Investors UK Limited, company number 11516839, is authorised and regulated by the Financial Conduct Authority. Details about the extent of our regulation are available from us on request and on the Financial Conduct Authority's website (www.fca.org.uk). The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors UK Limited.
The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors UK Limited.
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