Golding Capital Partners (GCP) has been mandated by TÜV SÜD Pension Trust to assemble and manage a portfolio of private debt investments. The managed account has a volume of some EUR100 million, which is to be invested in a portfolio of assets diversified by region and strategy.
With commitments of around EUR2 billion to private debt, GCP is one of Europe’s leading investors in this asset class.
In the current low interest rate environment, institutional investors are continuing to increase their allocation to alternative investments, driven mainly by the attractive risk-return profile. TÜV SÜD Pension Trust e.V. was set up in 2006 to fund company pension obligations and now plans to allocate a portion of its assets to a regionally and strategically diversified portfolio of private debt. The allocation will focus on mainstream credit strategies such as senior loans and mezzanine, with a smaller percentage available for credit opportunities and distressed debt.
GCP has already begun to build-up the portfolio with the first two investments having been made in the senior loans and mezzanine segment. Further investments will also be committed to three more debt funds. The portfolio will consist mainly of investments into primary debt funds in Europe and the US and construction is expected to be completed in three years.
GCP has been investing in the private debt asset class since 2003 and currently has assets of EUR2 billion committed to 70 primary funds. "We are delighted by the new partnership with TÜV SÜD Pension Trust. With six institutional investment programmes for private debt and now four managed accounts in this asset class we will continue to develop our role as one of Europe's leading independent asset managers for private debt,” explains Hubertus Theile-Ochel, Managing Partner of GCP.
"Our international network will enable us to provide the TÜV SÜD Pension Trust with access to leading funds which are often not accessible for new investors. Thanks to our long-standing expertise in the management of individual accounts we have all the skills required to build a successful portfolio for the TÜV SÜD Pension Trust", says Oliver Huber, Managing Director and Head of Private Debt at GCP, who can look back on 14years of professional experience as a private debt manager. He and his team will be responsible for constructing the portfolio.
"We made a deliberate choice when we appointed GCP to build and manage our private debt portfolio. This is an asset manager with great experience of the market, high-quality investments and an above-average track record. At the same time, they are able to meet our requirements precisely and flexibly", explains Reinhold Haas, Managing Director of TÜV SÜD Pension Trust eV.
Over the past ten years the GCP private debt portfolio has delivered an average annual IRR of 11 per cent significantly outperforming global public equity markets (MSCI World). "We increasingly find that in addition to returns, our investors are looking for investments that diversify their portfolio and are not correlated with stock market performance. Our investment solutions do precisely that and thus represent an ideal addition to the asset allocation strategy of institutional investors,” adds Theile-Ochel.