Mandatum Life’s private debt investment programme continues to go from strength to strength despite the market situation.
In the first closing, the Private Debt IV investment basket raised investment commitments worth EUR 84 million, which is more than the first closing of Mandatum Life Private Debt III.
“We are pleased, that our customers have shown interest in the alternative programmes, even in the current market situation. We believe that the markets offer opportunities to patient, agile investors, and that it makes sense to pursue alternative programmes over the cycles,” says Claes Siegfrids, Vice President, Investment Solutions at Mandatum Life.
Overall, Mandatum Life’s private debt investments have raised EUR 1.1 billion in assets from Finland, Sweden and Denmark since the beginning of 2016.
“Our private debt programme is also a concrete example of successful co-investing. Co-investing opens doors for our customers by enabling larger investment volumes, more favourable terms and an overall smoother investment process,” Siegfrids continues.
“In private debt, the market environment has become much more interesting especially when it comes to opportunistic strategies, and the level of activity is high in that area,” says Jussi Tanninen, Director, Alternatives at Mandatum Life. “In other illiquid asset classes, such as private equity and real estate, the market price has yet to find its level and few transactions are being made,” Tanninen adds.
Mandatum Life’s own loan strategy which invests in corporate credit had, by the end of April, raised a total of EUR 75 million in investment commitments in a new opportunistic loan strategy, which invests very broadly but selectively in the European and Nordic credit market. The investment focus of the new loan strategy is senior secured leveraged loans. Loan investment activities at Mandatum Life were expanded at the end of 2019 by establishing a loan strategy team that also manages Sampo Group’s own funds.
Loan investments are concretely present both as direct investments and as part of Mandatum Life’s customer mandates, allocation and pension products.
Claes Siegfrids, Vice President, Investment Solutions, firstname.lastname@example.org, tel. +35850 424 7607
Investors in Mandatum Life’s alternative investments under capital redemption contracts mainly include Finnish and other Nordic non-consumer investors and professional customers classified separately, such as pension funds and other funds and foundations, major companies and associations with considerable investment assets, and limited liability companies engaging in investment operations.