Swiss private bank Union Bancaire Privee has teamed up with Partners Group on a strategy targeting investments in both public and private debt.
Titled UBP – PG Active Income, the partnership will focus on investment grade, high yield, senior debt, mezzanine debt, real estate and infrastructure. It will bring together UBP’s global and absolute return fixed income team and Partners Group’s private debt team to source opportunities for investors.
Under the terms of the partnership, an investment committee will be established, made up of representatives from both firms. Both sides will manage sub-strategies that align with their “own individual philosophies and principles” and allocation decisions will be made by the committee.
“Low yields on traditional fixed income investments have prompted growing demand from investors globally for higher-yielding debt strategies, including private debt,” said Roberto Cagnatic, managing director at Partners Group. Nicolas Faller, co-chief executive of UBP Asset Management, said: “The collaboration with Partners Group represents an exciting addition to our offering at a time when investors are seeking new approaches to gain exposure to fixed income assets.”
UBP is headquartered in Geneva and had around CHF113.5 billion ($113.2 billion; €106 billion) of assets under management, as of 30 June. It operates from 24 locations across the world and its fixed income portfolio team manages €13.5 billion in assets.
Partners Group is in the process of raising capital for its credit opportunities fund, according to PDI data. In November, Korean Post, one of the largest pension funds in South Korea with more than $60 billion in assets under management, committed $100 million to the firm’s senior debt strategy. Headquartered in Zug, Switzerland, the firm employs 900 people in offices across the world and has €54 billion in assets under management.