EMEA: Allianz to offer infrastructure equity to external clients

14 December 2017 - 12:00 am UTC

German insurer Allianz has decided to bring Allianz Capital Partners (ACP) under the umbrella of Allianz Global Investors (AllianzGI), it announced on Thursday (14 December).

The reorganisation will allow Allianz to offer infrastructure equity investment to external clients.

Inframation reported the change was under consideration in September.

From 1 January 2018, ACP will be a subsidiary of AllianzGI and Jürgen Gerke, CEO of ACP, will report to Andreas Utermann, CEO of AllianzGI.

They will jointly develop a strategy from early 2018, Inframation understands.

Munich-based ACP will continue to be the in-house alternative asset manager for internal Allianz customers, including its US, German, French and Italian insurance companies, as well as Allianz pension funds. Its existing assets include Affinity Water, Cadent gas networks and Thames Tideway Tunnel in the UK as well as Tank & Rast, Gassled, Net4Gas, Gas Connect Austria and Chicago Parking Meters, and more than 80 renewables projects.

On Tuesday (13 December) ACP agreed to acquire 45% of Finnish grid owner Elenia.

ACP has EUR 5.3bn of infrastructure equity assets under management (AUM) and EUR 3.8bn of renewables, of a total of EUR 22bn AUM.

AllianzGI manages EUR 494bn of internal Allianz, third-party institutional and retail investors’ money, across listed equity, public and private debt, and alternatives, the latter making up EUR 34bn of its AUM. In infrastructure, it focuses on private debt and renewables equity.

Allianz Global Investors manages three closed-ended funds; Allianz UK Infrastructure Debt Fund(GBP 265m), Allianz Renewable Energy Fund (AREF) (EUR 150m) and AREF II (EUR 350m), as well as managed accounts. Allianz Global Investors is also fundraising for a second UK Infrastructure Debt Fund, targeting between GBP 250m and GBP 500m.

By pooling Allianz and third party capital, ACP will be able to be more flexible and target more investment opportunities, it said.

Other in-house investment managers have taken similar steps. Infracapital has its roots in investing Prudential Assurance Company capital, and now manages GBP 2.4bn of infrastructure assets across a number of funds. Prudential remains a cornerstone LP.

Hermes Investment Management was originally a fund manager for the BT Pension Scheme. It closed its GBP 1bn first fund in 2013, seeding it with assets it had acquired on behalf of the scheme.

OMERS Investment Management, which has USD 18bn AUM took a more conservative approach. Since 2014 it manages infrastructure assets on behalf of Japanese institutional investors, reaching between USD 3bn and USD 4bn this year, but the OMERS pension scheme remains its largest backer.

Swiss Life Asset Managers closed its first infrastructure fund in 2015, but is the largest LP, committing EUR 800m to the EUR 1bn fund.

Allianz