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Sustainability needs to be at the heart of their approach if private lenders are to become an essential part of the financing landscape post-pandemic, says Deborah Zurkow of Allianz Global Investors.
The investment unit is building its credit exposure to the Asia-Pacific region by deploying proprietary capital and expanding staff numbers.
Early signs indicate the nascent asset class is proving resilient to the pandemic’s shock, its first big test.
Australia, farm, windmill
Oxley Capital Partners founder Ben Craw says new opportunities are emerging as covid-19 disruption plays out.
In a recent survey, infrastructure’s 20 largest managers and investors were asked a series of questions, from how they were reducing their carbon footprint to whether they were divesting from fossil fuels. With some notable exceptions, the industry doesn’t seem to be rising to the challenge.
If today’s crisis were a repeat of the GFC, lenders could use those references to guide their approach, but covid-19 has brought the world into uncharted territory.
The firm is on track to amass at least $3bn when it closes its two credit strategies this summer, which will invest in senior and mezzanine debt.
Tom Sumpster’s departure comes after LGIM’s attempts to expand its infra strategy beyond senior debt hit roadblocks.
Large scale solar farm located in rural Spain
The fund, which had a target of $1bn, attracted investors who were all new to the firm's debt platform.
The funds offer investors two strategies of varying risk and are targeting gross returns ranging between 9% and 14%.
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