MetLife Investment Management (MIM), the institutional asset management business of MetLife, originated USD6.4 billion in private placement debt and private structured credit for the first half of 2021 across 107 transactions.
This included USD1.2 billion of investments originated on behalf of unaffiliated institutional clients. MIM’s total private placement debt and private structured credit assets under management stood at USD102.0 billion as of 30 June, 2021.
Nancy Mueller Handal, head of Private Fixed Income & Alternatives at MetLife Investment Management, says: “Market activity through the first half of the year was strong as issuers bolstered their financial position and institutional investors sought out a greater range of investment opportunities.”
MIM’s private placement origination for the first half of 2021 included USD4.0 billion, USD1.5 billion, and USD848 million in corporate, infrastructure and structured credit transactions, respectively, and added 52 new credits to the portfolio.
Corporate origination remained well-diversified by industry sector, led by more than USD650 million of investment into the global sports market where MIM’s Private Capital group has been a leading participant for more than 15 years. Sports-related investment was primarily associated with US and European professional sports leagues and franchises. Corporate origination also included USD495 million into credit tenant lease (CTL) transactions supported and secured by real estate assets and the lease streams of high-quality tenants operating across a diverse set of industry sectors. MIM originated approximately USD360 million of green bond investments, which were issued across three US and four European-based credits. Financing for UK and European-based issuers provided a significant contribution in the first half of 2021, representing nearly 40 per cent of total corporate origination.
Infrastructure origination included more than USD470 million of investment in federal, municipal, and university-related energy efficiency projects. Investment in social housing and renewable energy projects, cumulatively totalling over USD140 million, further supported MIM’s responsible investing and sustainability objectives in sourcing private assets.
Private structured credit continued to see attractive direct investment opportunities with more than three-quarters of origination connected to working directly with issuers. Origination included, among other sectors, investments in C-PACE (Commercial Property Assessed Clean Energy) and low-income housing, reinforcing MIM’s commitment to responsible investing.
“We expect continued strong activity in the second half, and we look forward to supporting our issuer community and investor clients with attractive, sustainable solutions that leverage our ability to uncover and execute on compelling market opportunities, our global relationships and our deep sector and structuring expertise,” says Mueller Handal.