Aviva Investors has acquired a collateralised debt obligation (CLO) backed by UK public-private-partnership infrastructure loans, as the firm plans to expand into securitised real assets debt.
Adriana Infrastructure CLO was launched in April 2008 by Dutch bank NIBC and was restructured in 2013, when Aviva Investors invested in senior notes of the vehicle.
Aviva Investors said the purchase of the CLO marked an “important step” in its strategy to extend its established infrastructure debt and private debt franchise into a growing market for securitised real asset investments, including infrastructure-backed CLOs.
Despite infrastructure CLOs remaining a niche activity, Aviva Investors said it had identified a significant opportunity to help develop the UK and continental European market by bringing together infrastructure and other real assets backed lending expertise, institutional capital and securitisation capabilities.
Aviva Investors plans to develop further securitisation solutions, including future CLOs backed by infrastructure and other real asset loans, which it said would create new opportunities for investors seeking greater flexibility across risk and return profiles.
Munawer Shafi, head of structured and private debt at Aviva Investors, said: “The acquisition of the Adriana CLO represents a major strategic step for our private debt platform and strengthens the relationship we have had with the CLO for more than a decade. Although CLOs have historically been associated with corporate lending, we believe infrastructure-backed CLOs provide investors with attractive diversification beyond traditional corporate exposures, while offering the flexibility to tailor risk and return profiles to suit investors’ needs.”
Darryl Murphy, head of infrastructure at Aviva Investors, said: “Infrastructure debt continues to present attractive opportunities across a wide range of risk profiles, spanning both investment-grade and sub-investment-grade markets, where we are already an active lender in both UK and Europe.
“The new CLO vehicle will enable us to scale our origination capabilities further, particularly in the sub-investment-grade segment and with greater investment flexibility. By combining our infrastructure lending expertise with structured finance solutions, we can further strengthen our position as a leading non-bank lender in this asset class.”
