MAPFRE Asset Management is making new investments in European funds via a new private debt fund that aggregates up to €350 million ($375 million) in assets of the insurance group’s subsidiaries.
The aim is to have exposure to 15 large fund managers, mainly in European investments and in euros, according to officials announced at the €40 billion firm, which is the largest independent, non-bank fund manager in Spain.
MAPFRE began investing in alternatives in 2018 and now has a €1.35 billion alternative investment business with exposure in real estate, infrastructure, private equity, private debt and renewable funds.
“This commitment to private debt helps us further diversify our portfolio as part of our range of alternative investments, without compromising at all on our conservative nature,” said MAPFRE CEO Alvaro Anguita. “It will also provide us with a little more profitability.”
The investment team’s criteria will include fund size, the experience of the management team, the time the team has worked together and the track record of previous investments. Executives also plan on prioritizing ESG criteria.
“ESG policies are being implemented in illiquid markets at a quicker rate than in liquid markets,” added Javier Lendines, MAPFRE AM general manager. “We appreciate how they require companies they finance to incorporate these commitments, which we can see in the covenants or in the spreads they’re paying in financing, among other factors.”