Assicurazioni Generali launches Generali Global Infrastructure (GGI), a new platform for investing in infrastructure debt which constitutes an important first step for the Group's multi-boutique asset management strategy.
Generali Investment Partners, recently established, will manage the multi-boutique platform, with the aim of transforming it into the first reality of its kind in Europe.
The platform makes use of internal know-how, but also of partnerships with some professionals in their respective fields of expertise.
GGI, the first boutique established within Generali Investment Partners, will develop Strategies for investing in infrastructure debt for both internal and external customers of the Group. It will leverage Generali's financial commitment to it asset classes, on the competence in providing solutions liability driven and on the excellent skills of its management team.
Assets managed on behalf of third party institutional investors are expected to reach i 2,5 billion euros within the first five yearsand then doubled over the next five years.
Thanks to the new multi-boutique model, GGI will invest in infrastructure debt diversifying both geographically and sectorally, developing products and solutions for investors. As for the investment philosophy. Given the initial capital base of the boutique and the interest from more sophisticated institutional investors, Generali foresees numerous opportunities at both senior and mezzanine levels. Furthermore, the long-term nature of these types of investments is perfectly suited to the insurance liabilities of a global group such as Generali.
GGI is a strategic partnership of which Generali holds a controlling stake. The other partners in the joint venture are Philippe Benaroya, Alban de La Selle and Gilles Lengaigne, highly qualified operators with recognized experience in the sector.
According to the group note, “institutional investors continue to show a very high interest in infrastructure, due to recognized characteristics such as portfolio diversification, attractive risk-adjusted returns and growing contribution to achieving investment objectives sustainable. This asset class is also essential for supporting economic development at a local and national level. The investment needs are extremely attractive, amounting to around $177 billion invested in Europe in 2017 alone. Projections point to global infrastructure investments estimated at around $49 trillion by 2030, up by more than 50 per cent compared to recent years".
Timothy Ryan, CEO of Asset Management of Generali, commented: “This is an important milestone in our journey to strengthen Generali's asset management and demonstrates our commitment to our strategic plan, which aims to increase by approx. 150 million the Group's net profit by 2020.”
Carlo Trabattoni, Head of Generali Investment Partners, said: “This joint venture is the first piece of our unique multi-boutique platform, integrating both new and existing highly specialized expertise. We see great potential and have strong ambitions for Generali Investment Partners.”
Philippe Benaroya said: “Our team is delighted to have joined forces with a solid global player like Generali, one of the largest insurance groups in the world. It is an honor for us to be the first platform of their multi-boutique strategy. This partnership will allow Generali Global Infrastructure to grow rapidly by accessing the capital of Generali and institutional investors. We expect to transform this platform into an industry leader, bringing innovation and strong performance to a rapidly evolving asset class.”
