Versorgungsanstalt des Bundes und der Länder (VBL) has issued two €750m mandates to Allianz Global Investors (AllianzGI) and BlackRock-owned Global Infrastructure Partners (GIP), respectively to invest in European infrastructure project debt.
The €65bn German supplementary pension fund for the public sector has appointed AllianzGI to build a diversified portfolio of investment-grade assets, focusing on key trends like energy transition, digital transformation, communications and transportation.
GIP has been hired to invest in investment-grade energy and power-generation projects, digitalisation, transportation, water and waste management, the German pension fund added.
Stefan Schütte, head of fixed income and private debt at VBL, said: “With these mandates, we are strengthening our position as a responsible, long-term investor in the European infrastructure market. We are thereby expanding our portfolio to include an additional asset class with an attractive risk-return profile.”
Schütte added that the selection of AllianzGl and GIP provides VBL with “two strong partners with extensive expertise and global reach”.
VBL plans to further increase allocations to private markets, as it progresses to implement its investment strategy.
Michael Leinwand, VBL’s chief investment officer, said: “We see private equity and private debt as very attractive asset classes from a risk-return perspective and a good match for our long-term, and very predictable liabilities, which is why their allocation will continue to grow in the coming years.”
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