Private credit
Private credit offers institutional investors investment opportunities with compelling risk-adjusted returns and strong downside protection. We believe that diversification across asset managers, geographies, sectors, styles and vintage years is essential to utilize the full potential of this asset class.
At AllianzGI, we have been financing the debt of non-IG mid market private corporates since 2013. With the ambition to provide innovative and diversified investment solutions to clients, the platform has continued to expand its reach both in terms of geography and investment focus over recent years.
Global private debt
Our Global Private Debt programme offers investors a suite of strategies that provides access to broadly diversified global private debt portfolios with strong downside protection. The strategies invest in private debt funds and co-investments that finance mid-sized companies’ needs in various situations such as expansion, growth or restructuring. Throughout the strategies, diversification will be sought across sectors, geographies and underlying investments.
Allianz was one of the early investors in private debt with a cycle-tested record since 2007. The AllianzGI Global Private Debt team has deployed more than EUR 20bn in over 50 private debt funds on behalf of Allianz entities. The team invests broadly across the private debt universe in senior lending, subordinated and special situations strategies.
AllianzGI offers institutional investors commingled programmes and managed accounts customized to each client’s needs.
Over the last few weeks fixed income markets have seen huge volatility, with significant questions about correlations and liquidity thrown up by markets. Central bank and government interventions have moved markets and in these conditions an approach which is active, flexible and unconstrained is crucial.
The Allianz Strategic Bond strategy adopts just this approach investing across the fixed income spectrum, taking a global, unconstrained approach in order to deliver returns from the full range of fixed income instruments. The strategy is different from many of its peers as it has four core global drivers of alpha, rather than domestic ones:
- Duration
- Credit
- Foreign exchange
- Inflation
In addition, in today’s volatile market environment it is crucial your fixed income allocation acts as it should, providing some diversification vs equities to protect the returns in your portfolio. The Allianz Strategic Bond strategy aims to behave like a true bond fund and targets a low correlation with equities, ideal when market volatility is high.
Since the outbreak of the Coronavirus and the subsequent volatility markets have seen this investment approach has been hugely beneficial to clients. The strategy has been able to use its flexibility to position itself to generate returns and offer diversification against falling equity markets.
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The strategy is run by Mike Riddell and Kacper Brzezniak, lead portfolio managers who are based in London. Mike has been running the Allianz Strategic Bond strategy since inception in June 2016.
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The Global Private Debt Opportunities strategy leverages the capabilities of the Allianz Global Diversified Private Debt programme and provides consistent access to predominantly middle-market corporate debt throughout the business cycle. It focuses on subordinated debt and countercyclical special situations strategies, complemented by senior secured loans.
The Global Real Estate Debt Opportunities strategy invests in real estate debt funds and co-investments that finance real estate assets and development projects in different sectors, including logistics, residential and office. Geographically, the strategy is broadly diversified globally, but also within regional sub-markets.
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12/17/2020
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European private credit
The European Private Credit (EPC) strategy provides senior long-term financing to mid-market companies, either to support their growth or to refinance, with a focus on performing companies benefiting from a good track-record of profitability.
The strategy invests through a wide range of opportunities, either directly originated or intermediated. It aims at providing our investors diversification away from the public markets and a balanced risk/return profile through credit selection and the robust documentation of investments.
Asia private credit
AllianzGI launched the Asia Private Credit strategy in 2018, recognizing the opportunity for institutional investors to invest in the region, driven by a significant funding gap for mid-market corporates in Asia seeking bespoke credit solutions for the purposes of growth acquisitions or refinancing.
To best capture this opportunity, we seek to act as a “one-stop” shop for structured credit solutions and provide customized holistic non-dilutive credit alternatives to cash generative, high growth, performing mid-cap companies via senior secured, subordinated or mezzanine lending. Our strategy provides debt financing to middle market corporates in Asia Pacific (excluding China) in order to capture attractive yield pick-up compared to comparable public debt (e.g. high yield, broadly syndicated loans) with strong downside protection, providing diversification within the credit asset class.