AllianzGI closes global fund of funds at €3.3bn

The fund was heavily oversubscribed and more than doubled its initial fundraising target.

Allianz Global Investors has held a final close of its first global private debt fund on €3.3 billion.

The Allianz Global Diversified Private Debt Fund, which held a first close in August 2021, enables institutional investors to invest jointly with Allianz in its global private debt programme. It saw interest from investors across Europe and AllianzGI said it was significantly oversubscribed, exceeding its initial €1.5 billion target.

The strategy will look to build a diversified portfolio of private debt investments across geographies, segments, vintage years and sectors to deliver attractive risk-adjusted returns. It has a lifespan of 12 years with extension options and a four year investment period. It is targeting an IRR in the high single digit range.

It will pursue primary fund commitments and co-investments globally with leading fund managers with Allianz acting as an anchor investor in the fund to ensure alignment of interest. The fund has already made 23 primary commitments as of year-end 2022 and expects to make a total of approximately 30.

Marc Smid, senior portfolio manager of private debt at AllianzGI, said: “We are very grateful for the trust and large interest received from our clients who can benefit from our strong market position to gain access to private debt opportunities worldwide. We look forward to seizing the best opportunities on behalf of our investors and to further develop our offering in this asset class and plan to launch a new strategy soon.”