QIC is launching a new private debt capability to offer institutional investors a structural solution for today’s low-yield environment.
To lead the new offering QIC has appointed Andrew Jones as the Head of Private Debt following an extensive search.
He will join QIC’s Sydney office on 1 February, 2021, and will manage a team responsible for the origination, analysis and management of private debt, initially in infrastructure assets.
QIC CEO Damien Frawley said the new capability will meet the current and future strong demand from investors arising out of the current low-yield environment.
“We believe private debt is a structural solution for today’s institutional investors seeking access to a defensive income stream with a strong yield in this ‘lower for even longer’ environment,” he said.
“Global infrastructure debt plays to QIC’s strengths as an experienced real asset manager. Our networks, global reputation in infrastructure and ability to bring attractive solutions in an efficient way to institutional and sovereign investors are key reasons we are moving into this capability.”
He added private debt is forecast to have 72 per cent growth in AUM from the current US$848bn recorded last year (2020) to US$1,456bn by 2025.1
“Offering private debt capabilities will also act as a source of financial stimulus for the real asset sector – such as infrastructure and real estate – and corporates that are looking to rebuild in a post-COVID world,” Mr Frawley said.
It is the first new real asset capability QIC has brought to market since offering infrastructure in 2006. It will complement the existing high calibre suite of alternative investment capabilities QIC currently offers institutional and sovereign investors.
Mr Frawley highlighted Mr Jones’ 30-plus years of experience and high level of institutional expertise in the domestic and global market. He joins QIC from AMP Capital where he was Global Head of Infrastructure Debt.
“Andrew possesses a highly-respected global, investment capability along with one of the market’s strongest abilities to attract global capital into infrastructure debt mandates through his global relationships,” he said.
“His appointment will deepen the synergies that already exists with QIC’s strong reputation for infrastructure equity management globally.”
The initial focus of QIC’s Private Debt strategy will be to build a team to develop an infrastructure debt offering. Mr Jones will report directly to Mr Frawley.
Mr Jones said: “I am excited to join QIC and bring Australian and global institutional investors a solid platform from which they can access strong risk-adjusted returns that are defensive, stable and broadly uncorrelated with listed equity markets.
“By providing a leading, skilled, active management approach to private debt, which will include astute asset selection, debt structuring and management, QIC will prioritise our investors and deliver them the strongest returns available.”
Citations
- Source: Preqin
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