MetLife Investment Management Originates a Record $9.2 Billion in Private Placement Debt and Private Structured Credit For 1H 2022
August 25 2022 - 8:00AM
Business Wire
MetLife Investment Management (MIM), the institutional asset
management business of MetLife, Inc. (NYSE: MET), today announced
it originated $9.2 billion in private placement debt and private
structured credit for the first half of 2022 across 137
transactions. This was a record for MIM and included $2.3 billion
of investments originated on behalf of unaffiliated institutional
clients. MIM’s total private placement assets under management
stood at $90.5 billion as of June 30, 2022.1
In the first half of 2022, MIM originated $5.3 billion in
corporate private placements, $2.6 billion in infrastructure
private placement debt, $1.3 billion in private structured credit
transactions and added 53 new credits to the portfolio.
Corporate private placement origination in the first half of
2022 extended across a wide range of industries and geographies and
encompassed a variety of financing structures.
- Leading industry sectors included REITs, financials,
transportation, industrials and food & beverage.
- Over 40% of corporate private placement origination was from
issuers based outside of the U.S., including over $1.9 billion of
financing provided to U.K. and European issuers.
- Over $600 million of investment in credit tenant leases (CTL)
as MIM continued to see strong relative value offered by this
financing structure.
- Approximately $500 million in green bonds and $100 million in
sustainability-linked notes, the latter tied to carbon emissions
reduction, were purchased across 13 transactions issued by both
U.S. and Europe-based issuers.
MIM’s infrastructure private placement origination in the first
half of 2022 increased by over 70% in transaction value compared to
the same period in the prior year as the market continued to
rebound from the lingering effects of the global pandemic.
- Infrastructure origination was well diversified across end
markets led by nearly $740 million of investment in
transportation-related projects and assets. Social housing and
communications projects rounded out the top three sectors of
investment, representing approximately $300 and $250 million in
financing, respectively.
- Nearly $1.4 billion to U.K. and European issuers, which
represented more than 50% of infrastructure production in the first
half of 2022, significantly higher than in the first half of each
of the last five years. We believe the relative increase in
infrastructure activity in these markets was driven by
pandemic-related pent-up demand for refinancings and new debt.
European investment included a direct financing for an
Austrian-based rail operator, with proceeds of the transaction to
primarily finance new electric rail vehicles to extend the
operator’s network of night trains, which offer an
environmentally-friendly alternative to air travel in Europe.
- MIM was also the sole lender in a financing to support the
decommissioning of two coal-fired power plants in New Jersey. The
transaction reinforced MIM’s long-term commitment to energy
transition initiatives that drive environmental sustainability and
decarbonization.2
Private structured credit’s production volume for the first half
of 2022 increased by more than 50% as compared to the same period
in 2021. Over 90% of this volume was executed directly with issuers
versus through a syndicated channel.
Nancy Mueller Handal, head of Private Fixed Income &
Alternatives at MIM, said: “MIM’s record production in the first
half of 2022 is a testament to our team’s origination and
structuring capabilities and global network of relationships. We
will utilize our established platform to continue to support
issuers and our clients over an evolving economic landscape.”
About MetLife Investment
Management
MetLife Investment Management, the institutional asset
management business of MetLife, Inc. (NYSE: MET), is a global
public fixed income, private capital and real estate investment
manager providing tailored investment solutions to institutional
investors worldwide. MetLife Investment Management provides public
and private pension plans, insurance companies, endowments, funds
and other institutional clients with a range of bespoke investment
and financing solutions that seek to meet a range of long-term
investment objectives and risk-adjusted returns over time. MetLife
Investment Management has over 150 years of investment experience
and, as of June 30, 2022, had $590.9 billion in total assets under
management. 3
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and
affiliates (“MetLife”), is one of the world’s leading financial
services companies, providing insurance, annuities, employee
benefits and asset management to help individual and institutional
customers build a more confident future. Founded in 1868, MetLife
has operations in more than 40 markets globally and holds leading
positions in the United States, Japan, Latin America, Asia, Europe
and the Middle East. For more information, visit
www.metlife.com.
Forward-Looking Statements
The forward-looking statements in this news release, using words
such as “believe,” “continue,” “seek,” and “will,” are based on
assumptions and expectations that involve risks and uncertainties,
including the “Risk Factors” MetLife, Inc. describes in its U.S.
Securities and Exchange Commission filings. MetLife’s future
results could differ, and it does not undertake any obligation to
publicly correct or update any of these statements.
Endnotes
1 At estimated fair value. Includes all corporate and
infrastructure private placement debt and private structured credit
investments managed by MIM.
2 The specific investments described herein are meant to provide
examples of recent transactions within the infrastructure asset
class. These transactions have not been selected to highlight past
specific profitable recommendations made by MIM and there is no
guarantee that these investments will not incur losses or that they
will continue to be held by MIM’s clients. These descriptions do
not constitute a recommendation for the securities identified or
take into account the particular investment objectives, financial
situation or needs of any potential investors or clients.
3 Total assets under management is comprised of all MetLife
general account and separate account assets and unaffiliated/third
party assets, at estimated fair value, managed by MIM.
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version on businesswire.com: https://www.businesswire.com/news/home/20220825005261/en/
For Media: Dave Franecki +1 (973) 264-7465
dave.franecki@metlife.com
Jansel Murad, DLPR +1 (646) 722-6537 mim@dlpr.com
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