Allianz holds EUR 500m first close for debut private debt fund

The fund has a EUR 1.5bn target and had received more than EUR 500m in commitments by the end of August, according to a statement. The fund was launched two months prior.

Allianz launched Allianz Private Equity Fund earlier in 2021 having launched its first infrastructure fund in 2020, the firm said in a statement. The PE fund was launched in June 2021 and has a target of EUR 1.5bn; this fund also sees the firm open its PE strategy to institutional LPs for the first time.

Investors
The fund is Allianz's first dedicated private debt fund for institutional investors and the vehicle is backed by 20 European investors at the time of its first close.

Investments
The fund invests in global private debt, focusing on mid-market corporate debt. According to its website, Allianz's private debt strategy generally focuses on senior secured loans, which will make up 40-60% of its portfolio, but the vehicle can also invest in subordinated debt (20-30%) and special situations deals (20-30%).

Allianz typically backs debt for companies with EBITDA of EUR 10m-100m, aiming for net leverage of less than 5x EBITDA. Sponsored debt will make up around 70% of its portfolio, while 40% will comprise LBOs, with refinancing, recapitalisation and acquisitions each comprising 20%.

The fund's investments are expected to have a maturity of five to seven years. The fund can deploy equity tickets of up to EUR 200m. Allianz aims to build a portfolio that provides diversity of geographies, sectors, fund vintage years and types of companies.

Allianz's private debt strategy makes 40-70% of its investments in North America, with 30-50% in Europe and up to 10% in the rest of the world. Around 80-100% of its investments will be in private debt funds, with up to 20% made up of co-investments.

People
Allianz – Sebastian Schroff (global head of private debt).

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