Aviva Investors has expanded its private debt platform with the acquisition of the Adriana Infrastructure collateralised loan obligation (CLO).

Established in 2008, the vehicle is backed by a portfolio of UK infrastructure loans made under public-private partnership and private finance initiative schemes.

The asset management arm of FTSE 100 insurer Aviva, which oversees £273bn in assets, said the deal extends its infrastructure and private debt franchise into securitised real asset investments, including infrastructure-backed CLOs.

The acquisition builds on a long-standing relationship with Adriana, the firm said, with Aviva Investors investing in the vehicle’s senior notes since 2013.

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“The acquisition of the Adriana CLO represents a major strategic step for our private debt platform and strengthens the relationship we have had with the CLO for more than a decade,” said Munawer Shafi, head of structured and private debt at Aviva Investors.

Infrastructure CLOs remain a highly specialised corner of the global securitisation market, with most activity concentrated in the US. Aviva Investors said it sees scope for the segment to grow in the UK and Europe, and plans to develop further securitisation products, including CLOs, following the deal.

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“Infrastructure debt continues to present attractive opportunities across a wide range of risk profiles, spanning both investment-grade and sub-investment-grade markets, where we are already an active lender in both [the] UK and Europe,” said Darryl Murphy, head of infrastructure at Aviva Investors.

“The new CLO vehicle will enable us to scale our origination capabilities further, particularly in the sub-investment-grade segment and with greater investment flexibility.”

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