Bridging the gap
We launched our Infrastructure Debt platform in 2012, matching institutional investors with long-term infrastructure financing. In 2017, we launched the Allianz Resilient Credit strategy, expanding the Infrastructure Debt platform into the “crossover” credit spectrum, targeting senior debt on core+ infrastructure assets and junior debt on core infrastructure assets.
As banks continue to focus on shorter-term lending, a gap has emerged within the medium-term private financing space. This enables Allianz Resilient Credit to match institutional investors, looking for medium-term reliable income, with the borrowing needs of companies that exhibit resilient business models and are capable of delivering robust gross margins.
Our strategy lends directly to private infrastructure like/asset heavy companies with a stable medium-term outlook. Our dedicated and experienced team originate and structure transactions which demonstrate monopolistic or oligopolistic characteristics and high barriers to entry. A key requirement is the essentiality of the asset or business which leads to strong revenue visibility over the term of the transaction.
Key reasons to invest with the AllianzGI platform
- Directly sourced secured medium-term debt (5-15 years tenor)
- Source of defensive private credit with superior returns relative to public debt (i.e. government and corporate bonds)
- Lending to companies with resilient business models and stable medium-term outlook
- Predictable, transparent revenue stream
- Highly covenanted debt structures
- Co-investment with Allianz and other third parties
- Experienced team with a strong track record and a reputation for delivery
Philosophy
Our philosophy is to source robust private credit opportunities from businesses which share the resilience of the infrastructure sector.
Originating these debt transactions on a private basis allows:
- an attractive risk-return proposition with an ability to influence the structure (both leverage and covenants)
- opportunities in segments which would otherwise be unavailable to institutional investors
Team
The team forms part of our existing Infrastructure Debt team, an experienced and well-resourced team with a proven operational platform and investment process. This allows the Allianz Resilient Credit team to leverage the processes and resources already in place for the core Infrastructure Debt team. To read more about the team please click here.
What other strategies are available? |
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. Infrastructure debt investments are highly illiquid and designed for long term investors only.
Investing in fixed income instruments may expose investors to various risks, including but not limited to creditworthiness, interest rate, liquidity and restricted flexibility risks. Changes to the economic environment and market conditions may affect these risks, resulting in an adverse effect to the value of the investment. During periods of rising nominal interest rates, the values of fixed income instruments (including short positions with respect to fixed income instruments) are generally expected to decline. Conversely, during periods of declining interest rates, the values of these instruments are generally expected to rise. 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, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or wilful misconduct. 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 GmbH, www.allianzgi.com, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de). Allianz Global Investors GmbH has established a branch in the United Kingdom, Allianz Global Investors GmbH, UK branch, 199 Bishopsgate, London, EC2M 3TY, www.allianzglobalinvestors.co.uk, which is subject to limited regulation by the Financial Conduct Authority (www.fca.org.uk). Details about the extent of our regulation by the Financial Conduct Authority are available from us on request. The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted.