Tuesday, May 28, 2024

Principal hires head of infrastructure debt to lead new division

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Principal Asset Management has launched a new private infrastructure debt capability and hired MetLife veteran Mansi Patel to lead the team.

The asset manager said that the new unit will focus on investing in a diversified portfolio of private infrastructure debt, targeting thematic investments in globalization, decarbonization, and electrification.

Principal said that its private infrastructure debt strategy is aiming to generate a higher risk premium than public infrastructure debt, with lower default risk and more favourable debt characteristics.

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“The launch of our private infrastructure debt capability comes at an opportune time for investors, given the powerful market forces driving tremendous capital needs across all infrastructure sectors,” said Todd Everett, global head of private markets at the firm. “Constraints in traditional bank funding have opened the door for private investors to fill the financing gap. This capability will allow investors to access an opportunity set that offers defensive cash flows, lower default risk, and exposure to critical investment themes like decarbonization, electrification, and digitalization.”

Patel, who will hold the role of senior managing director, head of infrastructure debt, will oversee the growth, operations and strategy of the newly-created team.

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She has nearly 20 years of industry experience, including 18 years at MetLife Investment Management as managing director, head of infrastructure debt and project finance for the North America, Latin America and APAC regions.

She will report directly to Everett.

“Private infrastructure debt can play a key role in portfolio construction for institutions and retail investors alike, aiming to offer safety, stability, and enhanced returns,” said Patel. “This makes it an exciting time to join Principal Asset Management, a leader in innovative and diversified investment solutions, and lead the new private infrastructure debt capability, which will be a compelling addition to the firm’s already strong private market line-up.”

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