Geneva-headquartered Union Bancaire Privée (UBP) has joined forces with Partners Group, a Zug-based private debt investment manager for the launch of the UBP PG – Active Income fund.
The strategy aims to provide qualified investors with global exposure to private debt and credit markets. It is co-managed by Partners Group’s private debt investment team and UBP’s global and absolute return fixed income team.
The strategy will rely on 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.
It is understood each team will manage underlying sub-strategies based on its own philosophies 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.
Partners Group currently manages more than €54bn in investment programs under management across its global private markets platform, with €9bn in private debt assets under
management, while UBP manages more than €13.5bn in fixed income portfolios focused on credit default swap (CDS) indices to deliver additional liquidity.
“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.”
UBP managed CHF113.5bn (€105.9bn) in assets as at 30 June 2016.