AllianzGI Raise €3bn for Semi-Liquid Fund, Following Apollo, Blackstone, and EQT

Allianz Global Investors has launched its first semi-liquid fund, aiming to raise €3bn in capital to invest into private markets.

The Allianz Core Private Markets fund will allow professional investors access to private markets and will be fully-paid in, meaning that investors do not have to deal with capital calls.

It will invest in private equity, corporate private debt and infrastructure equity and debt, alongside Allianz. The aim is to generate mid-range single-digit returns.

The fund will offer quarterly liquidity to investors subject to certain rules.

‘Thanks to the large interest from institutional clients in our private markets strategies which is proof of the trust of our estimated clients in our capabilities we have developed the Allianz Core Private Markets Fund,’ said Edouard Jozan, head of distribution Europe at AllianzGI. ‘The special structure of this cross-asset fund makes private markets also available to new investor groups within our professional investor client group.’

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AllianzGI manages around €90bn in private market assets.

Semi-liquid funds have become increasingly more popular over the last two years as asset managers have sought to solve the challenge of access to private markets in response to increased demand from individual investors.

These structures typically offer period redemption opportunities up to a certain amount, usually 5% of net asset value per quarter.

Others, like Apollo Global Investors, EQT and Blackstone have all launched semi-liquid funds over the last year.

Although some still question the viability of offering private assets in open-ended funds, even when only allowing limited liquidity, many asset managers believe they can offer the best of both world for investors.

Source: CITYWIRE

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