German insurance firm Allianz Global Investors is close to completing the purchase of private debt firm Sound Harbour Partners.
The acquisition is expected to be completed in the first quarter of 2017. Details of the deal were not disclosed, although Allianz GI will acquire the private debt firm’s assets.
Andreas Ultermann, chief executive of Allianz GI, said: “Over the last five years, Allianz GI has invested steadily in the quality and breadth of its active investment offering.”
He continued: “Within our fast-growing alternative segment, private debt stands out as a particularly exciting area, where we’ve clearly signalled our intent to expand our capabilities to address our clients’ evolving investment needs.”
Sound Harbour is headquartered in New York and manages a number of strategies covering direct lending, distressed debt and opportunistic credit investments. The firm deploys capital through closed-ended structures, separate managed accounts and CLOs.
The firm manages the Sound Harbour Capital Solutions Funds and Sound Harbour Loan Funds. The former provides loans in the range of $10 million and $50 million in US mid-market funds with an EBITDA between $15 million and $100 million. The Loan Funds invests in senior secured and second lien banks as well as syndicated loan purchases.
Michael Zupon, founder of Sound Harbour, said: “Joining Allianz GI will enhance our ability to capitalise on trends favouring growth in alternative investment managers with scale, brand recognition and long-term capital.”
In October, Allianz GI made a move into infrastructure debt structures partnering up with the IFC, the investment arm of World Bank Group. Allianz GI will invest $500 million in infrastructure projects in emerging markets.