Allianz Global Investors (AllianzGI) has announced the final close of the global Allianz Private Debt Secondaries Fund (APDS) at €1.5bn (£1.26bn).

The fund, which was launched in September 2022, was heavily oversubscribed and exceeded the initial €500m target fund size. The launch of the successor strategy is planned for the middle of this year.

The APDS is AllianzGI’s first secondaries fund. It invests in senior direct lending opportunities, complemented by opportunistic positions, aiming to build a diversified portfolio across managers, sectors, and geographies.

Read more: AllianzGI raises €300m in first closing of new private credit impact fund

APDS’ institutional investors are able to leverage on AllianzGI’s private debt primary and co-investment activities and invest in secondary opportunities targeting the US, Europe, and Asia.

“The market for private debt secondaries is being established and we were one of the first asset managers to launch a fund for this strategy,” said Edouard Jozan, head of distribution Europe. “We are very proud of the strong interest we have seen from many international institutional investors for our first secondaries fund that allows investors to benefit from the strong position of Allianz as one of the leading private debt investors globally.”

Read more: Lack of valuations pose risk in secondaries market

Allianz private debt secondaries senior portfolio managers Joaquín Ardit and Anselm Feigenbutz added: “We expect private debt secondaries to grow further in the next years and are grateful for the trust from so many institutional clients. With over 15 years of investing experience, we can rely on as strong network and market access that helped us to commit a significant portfolio for the APDS already.

“As one of the frontrunners in the market, we look forward to sourcing further attractive investment opportunities while we are working on the launch of a successor strategy that is envisaged for mid of 2025.”

AllianzGI manages more than €90bn in private markets.

Read more: Allianz Infrastructure Credit Opportunities II Fund raises €533m