Our philosophy is to source high credit quality infrastructure debt transactions for institutional investors by identifying, differentiating and managing risk. By originating such placements privately we are able to source opportunities with attractive illiquidity spreads and offer improved access to a diversity of sectors that would otherwise be closed to public investors.
Infrastructure debt is an asset class that should provide stable returns and cash flows over long-term horizons due to the fundamental essentiality of these real assets, with low relative levels of default. However, care needs to be taken in selecting the right investment as not all transactions labelled as “infrastructure” exhibit the same stability of future cash flows. At AllianzGI the focus is on assets meeting the following criteria:
1. Essential Physical Asset
2. Long-Term Stable Revenue Stream
3. Long-Term Debt
4. Clear Business Purpose
Our investment process is designed to ensure that every investment is reviewed by both the team and the AllianzGI Infrastructure Debt Investment Committee in accordance with a rigorous process of continual vetting and benchmarking. Compliance and credit approval is thus embedded across all elements of the investment process.
Since joining AllianzGI, the Infrastructure Debt team has successfully committed over £5.5 billion in capital1
to infrastructure borrowers. AllianzGI’s Infrastructure Debt team’s competitive advantage is its substantial pre-existing industry-relationships and execution experience of infrastructure debt tailored for institutional investors. The team thus differentiates itself through sourcing and origination of private placements, innovative financial engineering and through the enhanced credibility that our current client base delivers with borrowers.
The Infrastructure Debt team has been active in the primary market on behalf of Allianz and third-party clients since 2012. There are opportunities for our clients to invest on a more accelerated basis with Allianz Global Investors than would be possible with other managers. We are able to offer clients both pooled and segregated solutions.
1 As at April 2016