- In focus for 2024: energy transition, secondaries, co-investments, and active management across direct and indirect, debt and equity strategies
Allianz Global Investors (AllianzGI) has announced that its infrastructure business has reached the milestone of over EUR 50bn AuM [1] across the debt and equity infrastructure platforms and strategies which accounts for over 50% of AllianzGI´s private markets pillar. Since the launch of the infrastructure business, the infrastructure debt and equity teams both on the direct and indirect side have closed more than 200 transactions in over 50 countries on 6 continents. In the last five years the infrastructure AuM at AllianzGI have grown from EUR 28.2bn (4Q 2018) to EUR 51.2bn (4Q 2023).
The infrastructure debt team has enabled global transactions totalling around EUR 25bn and the infrastructure equity team has over EUR 28bn AuM which makes AllianzGI one of the largest infrastructure investors globally [2]. The indirect infrastructure equity team has been investing since 2016. In 2023, AllianzGI launched its indirect infrastructure debt strategy, which focusses on energy transition.
Specific emphasis of the infrastructure pillar is on providing capital for the energy transition, social infrastructure, the transport and communications sectors. At today´s end of the Infrastructure Investor Global Summit 2024 in Berlin the infrastructure management team is sharing their views for this year:
Claus Fintzen, CIO Infrastructure Debt, comments: “Uncertainty remains in 2024 –Infrastructure is well positioned to cope with it. While interest rates seem to have reached their peak the geopolitical environment continues to be tense. A diligent and disciplined approach to hedge this volatility is therefore key for long-term infrastructure debt investors who can play a crucial role in financing the energy transition.”
Andrew Cox and Michael Pfennig, Co-Heads of Infrastructure at ACP, say: “With a record low in M&A last year we see valuation expectations beginning to align and expect attractive opportunities over the coming years. In particular, we see high demand for capital for assets and companies that drive energy and digital transformations. These changes will be fundamental for society and will require long-term investors that can provide patient capital and help navigate this critical journey.”
Maria Aguilar-Wittmann and Tilman Mueller, Co-Heads of Infrastructure Fund & Co-Investments at ACP, add: “Energy security and energy transition targets on the one hand and the rapidly increasing digitalization and artificial intelligence investments on the other hand will continue to drive attractive co-investment deal flow during 2024. Access to these opportunities alongside experienced fund partners can help to accelerate deployment, drive sustainability, and boost returns.”
Kulbhushan Kalia and Alexander Schmitt, Co-Portfolio Managers. Infrastructure and Energy Transition, Global Private Debt, say: “Net-zero goals require trillions of euros of investments [3] across infrastructure sub-sectors and supply chains over the next decade. Private capital is playing and will continue to play an ever-larger role in this transition. In our view, 2024 will continue to build on the strength of the last years as regulatory tailwinds will get stronger and risk adjusted returns will remain highly attractive.”
AllianzGI currently manages a wide range of investment solutions and around EUR 90bn in private market assets of which over 50% are invested in infrastructure making AllianzGI one of the largest infrastructure investors globally.
