The new cooperation will combine Partners Group’s extensive experience of investing in private debt markets on behalf of its clients with UBP’s substantial expertise in managing liquid high income public debt strategies. Partners Group currently manages over EUR 54 billion in investment programs under management across its global private markets platform, with EUR 9 billion in private debt assets under management, while UBP manages more than EUR 13.5 billion in fixed income portfolios with a core focus on credit default swap (CDS) indices to deliver additional liquidity.
The two parties have come together to launch UBP PG - Active Income, a strategy that will provide qualified investors with global exposure to private debt and credit markets. Co-managed by Partners Group's Private Debt investment team and UBP’s Global and Absolute Return Fixed Income team, the strategy will employ a relative value approach to allocate capital across private and public debt asset classes and regions including investment grade, high yield, senior loan, mezzanine debt, real estate and infrastructure.
Each team will manage underlying sub-strategies based on its own individual philosophies and principles, with an investment committee comprising both UBP and Partners Group investment professionals responsible for allocation decisions between the sub-strategies, monitoring investment restrictions and managing liquidity. The ultimate aim of the UBP PG - Active Income strategy will be to provide clients with attractive risk-adjusted net returns and significant diversification relative to traditional investment approaches.
“We believe this innovative investment solution will be of significant benefit to qualified investors looking to increase their strategic allocations to market segments they are unable to access through traditional public fixed income markets”, said Nicolas Faller, Co-CEO of UBP Asset Management. “The collaboration with Partners Group represents an exciting addition to our offering at a time when investors are seeking new approaches to gain exposure to fixed income assets.”
Roberto Cagnati, Managing Director, Head of Portfolio and Mandate Solutions, Partners Group, added: "Low yields on traditional fixed income investments have prompted growing demand from investors globally for higher-yielding debt strategies, including private debt. Partners Group has built a track record of innovation in providing investors with access to private markets investments and we are delighted to work with UBP on another innovative investment solution for the market."