Oslo, 22 October 2019. Pareto Alternative Investments AS ("PAI") today announced the launch of Pareto Obligasjonsfellesskap Infrastruktur ("POFI"), a discretionary mandate for debt financing of infrastructure assets. POFI seeks long-term total returns by providing debt to companies or projects with assets that qualify as infrastructure under Solvency II. The mandate expands PAIs current range of strategies for real asset debt investments.
POFI will be managed by PAI’s credit team which also manages Pareto Obligasjonsfellesskap Eiendom and Pareto Eiendomskreditt, two real estate debt strategies. Head of credit investments at PAI, Morten Edvardsen, commented: "We see the need in the current interest rate environment for institutional capital to find low risk strategies with attractive credit premiums and high relative capital efficiency compared to other alternatives. Not only does infrastructure debt investments have low expected losses, but also low expected correlation with GDP and other asset classes such as equities. With Solvency II, our investors have got access to a new asset class where their current exposure is moderate. Infrastructure is a real asset strategy and may provide an attractive alternative to real estate, where most investors already have significant investments. Finally, infrastructure debt should be attractive for institutional capital such as life insurance and pensions funds to match the duration of liabilities and maximise capital efficiency."
Johan Anker-Rasch, Managing Director of PAI said: "With the successful launch of POFI we have reached yet another important milestone for PAI´s real asset strategy. Infrastructure debt is very much related to the core of our competence within real estate and credit investments. We are honoured with the confidence and trust our investors have placed in us with this new mandate. This is a first step in our strategy to facilitate infrastructure investments for institutional investors."
Pareto Alternative Investments was founded in 2015, and currently manages close to NOK 17 billion through a range of mandates and funds covering both equity and credit investments. The company is 100% owned by Pareto AS, a leading financial group based in Oslo, Norway.
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