Tailoring debt solutions to clients’ needs through a range of alternative investment types
Delivering wide-ranging strategies across alternative debt
Alternative debt covers a broad spectrum, from trade and asset-backed finance through to government supported transactions, derivatives strategies, private asset-backed securities (ABS) and debt-for-nature swaps. In this diverse asset class, we offer a pooled fund solution to investors in the form of our Short-Term Alternative Finance Fund, a fund which invests in sub one-year opportunities.
Growing demand for credit facilities from alternative investment funds and large corporates has meant banks can no longer service these alone. We have developed trusted relationships with global banks and other financial intermediaries to source what we believe to be attractive investment opportunities for our clients.
Case studies
Swap repackaging transactions
Swap repackaging transactions involve the transfer of inflation-linked derivatives exposures held by a bank to an institutional investor better suited to holding long-dated assets. They typically involve highly rated regulated utility companies with the credit exposure ranking in line with, or often senior to (super- senior), their highest-ranking debt.
Capital Call Facilities (CCFs)
CCFs are senior short-dated loans (typically <12 months) to private investment funds that are secured against their legally binding Limited Partners (LPs) commitments as well as any fund assets. This form of bridge financing helps private funds smooth their drawdown profile and boost their IRRs.
Belize – debt-for-nature deal
Belize is the first project where we committed to the issuing of a blue bond, supporting marine conservation. The aim is to significantly reduce the country’s debt service cost.
At the same time, a proportion of the proceeds and interest payments of the loan will go towards protecting Belize’s barrier reef – the second largest in the world and a UNESCO recognised world heritage site.
Other asset strategies
Corporate debt
For private corporate and public sector entities seeking to borrow outside of the public markets, we specialise in providing bespoke debt financing across a variety of sectors, structures and geographies.
Infrastructure debt
We provide debt financing across four key infrastructure sectors: energy, transportation, digital and social.
Real estate debt
Drawing on LGIM’s position as one of the UK’s largest and most experienced property investors, we provide expertise in senior loans secured against a broad range of property sectors.
Private credit
Partnerships designed to deliver real social and economic impact
Get in touch
The Real Assets Solutions team operates right across the entire LGIM Real Assets platform. With more than 100 years of combined industry experience, our 14-strong team draws on the expertise of former investors, consultants and product specialists.
Key risk
The value of any investment and any income taken from it is not guaranteed and can go down as well as up,
and investors may get back less than the amount originally invested.