Private debt and infrastructure in demand: Golding raises 900 million euros
Munich, Germany — Golding Capital Partners (Golding), one of Europe’s leading independent asset managers for private equity, private debt and infrastructure, has closed two funds at record levels at the end of 2018. The Golding Private Debt 2016 fund received capital commitments of over €580 million at the close of subscription, making it Golding’s largest private debt investment program to date. The Golding Infrastructure Co-Investment 2016 fund closed with a final subscription of €336 million, well above the original target volume of €300 million.
Golding Private Debt 2016 reaches record volume
With a final subscription amount of over 580 million euros, the fund volume of Golding Private Debt 2016 is once again significantly higher than that of the predecessor fund and thus exceeds all previous placement results in the important private debt segment. The current investment program was very popular with existing customers, who alone subscribed to around 80 percent of the total volume.
Golding Private Debt 2016 provides capital to finance corporate acquisitions and growth financing in the Western European and North American middle market, primarily senior secured loans. Golding’s additional investment in opportunistic credit strategies also stabilizes the fund’s portfolio for uncertain or volatile market periods. The goal is to build a broadly diversified portfolio with approximately 300 underlying transactions. With the subscription of 15 primaries, secondaries and co-investments, this portfolio expansion is already well advanced, and so far around 20 percent of the subscribed capital has already been called up from investors.
With this strategy, investors benefit from different return components, which may include equity-like components in addition to an attractive current interest rate. A total of 42 institutional investors — including pension funds, insurance companies, savings banks, cooperative banks and foundations — will receive an income distribution in the high single-digit percentage range on their committed capital already for 2018.
Managing Director Hubertus Theile-Ochel is highly satisfied: “With the private debt asset class, we are the clear market leader in Germany and continue to enjoy a high level of popularity among our investors. They appreciate the more attractive risk-adjusted returns compared to more liquid leveraged loans, bonds and the traditional interest business. In response to investor demand, we plan to launch the successor fund this year.”
“Golding has been an active investor in the private debt asset class for over 16 years. Our above-average track record clearly demonstrates our proven expertise,” affirms company founder and managing director Jeremy Golding (photo) of the independent asset management company’s expertise. “We now manage over €3 billion in this asset class and have invested in a total of 100 primaries, secondaries and co-investments from Europe and North America to date.”
Golding Infrastructure Co-Investment 2016 oversubscribed for final closing
The Golding Infrastructure Co-Investment 2016 investment program provides institutional investors with direct access to quality-assured infrastructure co-investments for the first time. It was successfully closed at €336 million at year-end 2018, exceeding the original target of €300 million. The launch underlines Golding’s position as one of the leading independent providers of infrastructure investments in Europe and is one of the first European providers to offer this form of investment to its investors.
Golding Infrastructure Co-Investment 2016 is designed for investors who aim to quickly commit capital and gain direct exposure to infrastructure projects without sacrificing broad diversification. “As a large and established infrastructure fund investor, we have a broad portfolio of assets and a strong network to outstanding managers. These are important foundations for a steady deal flow of attractive co-investment opportunities,” said Dr. Matthias Reicherter, Partner and CIO at Golding.
The portfolio build-up is progressing rapidly: of a total of 12 to 14 planned infrastructure co-investments, six have already been implemented to date, including transactions in the transport, energy and logistics sectors. Almost 40 percent of the subscription commitments have already been called up from investors, which include in particular insurance companies, pension funds and state banks.
“The high demand from institutional investors is a clear confirmation for us that we have filled a real gap with Golding Infrastructure Co-Investment 2016,” confirms Hubertus Theile-Ochel, Managing Director of Golding. “Investors looking to target their existing infrastructure portfolio with solid infrastructure assets from Europe and North America will benefit from our solution.”
About Golding Capital Partners
Golding Capital Partners GmbH is one of the leading independent asset managers for private equity, private debt and infrastructure in Europe. With a team of over 90 employees based in Munich, London, Luxembourg, New York and Tokyo, Golding Capital Partners supports institutional investors in building their investment strategy and manages assets of more than €7 billion. The more than 160 institutional investors include insurance companies, pension funds, foundations, family offices as well as banks, savings banks and cooperative banks.