Infrastructure debt

The Paris-based firm’s fourth flagship strategy ‘is in advanced deployment with 16 investments made’ in sectors including the energy transition, transport and digital infrastructure.

Firm-wide AUM increases 12.9% YoY, while its credit segment AUM rose 7%.

The $1.3trn manager said that it has recorded record fundraising YTD as of 30 September.

The first vintage fund fell short of its target, but the latest fund doubled its $1.5bn target and hit its hard-cap.

The firm’s second infrastructure credit fund will invest across the capital structure, with a third vehicle already in the works.

Higher fees from diversification to Europe and alternative credit help boost platform and drive rise in fee-paying assets in Q3.

A broader opportunity set and higher yields are attracting a wider range of investors to private investment grade credit, says Jim Moore, head of private placements at Barings.

Risks and a shortage of suitable assets may limit how much infrastructure’s market share can grow.

An integrated approach to assessing risks associated with geopolitical upheaval, climate change and artificial intelligence is crucial to future-proofing European private credit investing, says Peter Arnold, head of European private markets at LBP AM.

As investor demand for diversified portfolios, tailored bilateral structures and more defensive positioning grows, dispersion across private credit managers is becoming increasingly apparent, says James Reynolds, global co-head of private credit at Goldman Sachs Alternatives.