Aviva Investors launches private debt LTAF
Aviva Investors has launched a long-term asset fund (LTAF) focused on multi-sector private debt.
This is Aviva’s third LTAF, joining the asset manager’s real estate LTAF and climate transition LTAF.
The private debt LTAF has received an initial £750m in funding from Aviva’s My Future Focus range of defined contribution (DC) default solutions, which invests on behalf of the firm’s range of auto-enrolment DC default strategies.
The LTAF will also be available to external investors in the UK’s wealth markets.
“We are pleased to add a dedicated private debt solution to our suite of LTAFs, further positioning Aviva Investors as the largest provider of LTAFs for the UK DC and wealth market,” said Daniel McHugh, chief investment officer at Aviva Investors.
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“Private debt is a key growth area for us, and we believe our multi-sector approach will best-capture relative value through the market cycle. This should give it potential to deliver strong risk-adjusted returns and diversification to pension schemes, whilst also meeting their liquidity needs.”
The fund aims to produce a diversified portfolio of investments from across the private debt spectrum and a range of sectors, including opportunities in real estate debt, infrastructure debt, structured finance and private corporate debt.
“The launch of our private debt fund continues our ambition to be the go-to LTAF provider for the UK’s DC and wealth markets, as we create a suite of funds which gives access to a range of asset classes and risk-return profiles,” said Jill Barber, chief distribution officer at Aviva Investors.
“With more retirement savings represented by DC pension funds which have specific liquidity needs, the emergence of the LTAF regime makes it easier for these investors to allocate more to private markets. We are therefore delighted our private debt LTAF will be offered as part of Aviva’s default solutions and be available to the wider market.”
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Aviva’s LTAF range now represents just over £3bn across a variety of private market asset classes.
“We are the UK’s largest workplace pension provider and our defined contribution default solutions help customers prepare for retirement by investing in a diversified range of asset classes, including private markets,” said Maiyuresh Rajah, director of investments for wealth and advice, at Aviva.
“We are continuing to further diversify our solutions and this investment in private debt is another important step in that process. By supporting the Aviva Investors multi-sector private debt LTAF, we believe we can continue to help our customers achieve good outcomes in retirement while supporting economic growth by providing funding to companies which often have more bespoke financing requirements.”
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