Spanish insurance company MAPFRE is launching a new private debt fund, which will bring together all the investments of the insurance group’s subsidiaries already made in this asset type, as well as new investments, up to an amount of 350mn euros.
The ultimate aim of the fund is to have exposure via 15 large fund managers, mainly in European investments and in euros.
“This commitment to private debt helps us further diversify our portfolio as part of our range of alternative investments, without compromising at all on our conservative nature. It will also provide us with a little more profitability,” said Álvaro Anguita, CEO of MAPFRE AM.
The management team will carry out exhaustive due diligence of the funds to be invested in and will take criteria such as fund size, the experience of the management team, the time it has been working together, and the track record of previous investments into account. And, as with other MAPFRE investments, priority will be given to ESG criteria.
“ESG policies are being implemented in illiquid markets at a quicker rate than in liquid markets. We appreciate how they require the companies they finance to incorporate these commitments, which we can see in the covenants or in the spreads they’re paying in financing, among other factors,” adds Javier Lendines, General Manager of MAPFRE AM.
MAPFRE began its foray into alternative assets through funds in 2018. Since then, it has committed 1.35bn euros across real estate, infrastructure, private equity, private debt and renewable funds.