Berenberg expands debt fund portfolio with two new multi-investor funds
The private bank Berenberg continues its successful debt fund strategy with two new closed-end multi-investor funds, according to the company's release. The funds are aimed for institutional investors and are launched by Germany's oldest private bank alongside with Universal-Investment- Luxembourg as Alternative Investment Fund Manager.
In total, the AIFM now administers 13 funds of this type with a volume of around 3 billion euros for Berenberg. Both funds enable investors to make broadly diversified investments in senior secured corporate or ship mortgage loans starting at mid-single-digit million amounts and are intended to continue the successful history of the already existing funds.
By exploiting financing niches, the execution of complex financing structures and Berenberg's strong competitive position in the segment of transaction financings for medium-sized corporates, investors can achieve an attractive return with a conservative risk profile at the same time.
“This approach has proven its worth even in a challenging market environment such as 2020 in the light of the Covid- 19 pandemic. All Berenberg debt funds were able to continue their track record without any losses,” said Hagemann. “The interplay of our existing debt funds in this segment enables us as the only market player, to provide large transaction volumes of more than 150 million Euros from one hand in the meanwhile established financing niche of “super senior/first out” and senior LBO market. This is appreciated by borrowers and marks for Berenberg significant competitive advantage.”
In the segment of secured ship mortgage loans, the Hamburg-based private bank pursues an extremely conservative approach with senior secured mortgage loans for the major commercial shipping segments with a maximum loan-to-value of 60 per cent – on average significantly below – and loan tenors in the lower maturity band.
ABOUT UNIVERSAL-INVESTMENT
The Universal-Investment Group is one of Europe's leading fund service platforms and Super ManCos with around EUR 719 billion in assets under administration, over 1,900 mutual and special fund mandates and a workforce of more than 1,000 at locations in Frankfurt am Main, Luxembourg, Dublin and Krakow. Founded in 1968, the company is an independent platform for asset managers as well as institutional investors offering structuring and administration solutions as well as risk management for Securities, Real Estate and Alternative Investments. The companies UI Labs, UI Enlyte and CAPinside complement the group’s innovative service offering. Universal-Investment is a signatory of the UN Principles of Responsible Investment.