AllianzGI goes shorter with new infra debt strategy

The investment manager has launched a shorter-term ‘Resilient Credit’ strategy as a complement to its existing core infrastructure debt business.

Allianz Global Investors has formed a new medium-term secured lending strategy in the infrastructure debt space, called ‘Resilient Credit’.

The strategy has not raised any capital so far. A spokesman for the firm told sister publication PDI it will originally aim to attract institutional investors to separately managed accounts. A fund product may be considered at some future point, according to the spokesman.

Resilient Credit will complement AllianzGI’s existing core infrastructure debt business – which launched in 2012 – by pursuing opportunities in asset-intensive businesses that have similarly favourable credit characteristics but are more suited to shorter investment horizons.

Emmanuel Deblanc, who joins from BNP Paribas, has been brought in as a director to lead the strategy. He headed a similar business at BNP Paribas, as well as being co-head of the bank’s debt advisory team.

“We know that the same investors who need long duration asset liability matching also have allocations of capital available for shorter-term investments for which a broader range of assets are suitable,” said Claus Fintzen, AllianzGI’s chief investment officer for infrastructure debt.

“Recognising that what is appropriate for 10 years may not be a good idea over 30 years, we ruled out extending our definition of infrastructure to include things like ‘core +’,” he added. “So now, in launching this distinct new strategy, our clients will be able to allocate to either or both strategy confident that the credit and pricing of each will be appropriate to the tenor of the investment and the nature of the underlying enterprise and the risk appetite of the individual investor.”

The firm has also announced that Benjamin Walter has joined the core infrastructure debt team from BlackRock, where he was a vice president in the infrastructure debt team. At BlackRock, he helped to set up the platform and raised investment capital as well as investing in and managing European infrastructure debt investments.

AllianzGI has invested more than €10 billion on behalf of clients into infrastructure debt projects globally. Infrastructure debt is part of its ‘alternatives’ pillar, which exists alongside the three other pillars of equities, fixed income and multi-asset.