Voya Expenditure Management Invests $4.6 Billion of Personal Placement Financial debt In 2020 | Business

“With additional than $85 billion issued in the non-public placement current market, we remained disciplined traders and only participated in which credit rating danger, construction and pricing achieved our requirements,” explained Chris Lyons, head of Private Credit, Voya IM.

Voya IM has found substantial development in its external client base around the past five years, with institutional customers now representing 56% of Voya IM’s whole $21.5 billion of private placement assets underneath administration (AUM).

“Other firms working in the personal placement house do not have the luxurious of selectivity since they have this kind of massive target ranges of manufacturing to fill every 12 months as a final result of significant need from their Common Accounts. We purposefully limit the dimension of our over-all once-a-year investment decision requires so we can focus only on transactions that exhibit remarkable threat/return qualities. This aligns us with the pursuits of our shoppers and is a aspect of our platform that genuinely resonates with institutional buyers,” Lyons continued.

As a consequence of the COVID-19 current market dislocation in March, non-public placements’ unfold top quality in excess of likewise rated general public corporate credit card debt soared to the optimum stage in the very last 10 years. This delivered an desirable entry stage for institutional investors looking to increase existing allocations or allocate to the area for the initial time. When the group expects that non-public placement spreads will revert back again in the direction of the indicate in 2021, it thinks that distribute levels will stay elevated versus their extensive-term normal.

“We husband or wife with our shoppers to help them definitely realize the house and how an allocation to non-public placements fits in relation to the broader context of their portfolio. We think that the development of our non-public placement consumer base has been pushed by not only our overall performance, but also our dedication to superb customer services. Each individual customer is a reference and that is a little something we will make certain carries on as our consumer base grows,” mentioned Voya’s Virginia O’Kelley, personal credit portfolio manager.

Likely ahead, Voya IM expects that infrastructure venture financing will continue to characterize a more substantial part of its total private credit company. Infrastructure personal debt was $1.4 billion, or 30.4%, of Voya IM’s full amount committed and funded in 2020.

Voya IM recently employed a staff focused on the origination, underwriting, structuring and management of mezzanine prospects in renewable energy infrastructure jobs. In June 2020, the crew shut its first offer, an settlement to provide $30 million in credit card debt funding to Bakersfield Renewable Fuels to help retrofit a crude oil refinery to create diesel from soybean oil and other plant-based mostly feedstock.

“The addition of our renewable vitality task funding group is an excellent enhance to Voya’s 3 decades of diversified infrastructure lending. To continue on to grow, we want to hear to our customers. ESG is turning out to be significantly important to clients and we believe that mezzanine personal debt investments in renewable strength jobs signify 1 of the most attractive means to achieve ESG publicity,” reported Lyons.

About Voya Expenditure Management

A primary energetic asset administration company, Voya Financial commitment Administration manages, as of Dec. 31, 2020, extra than $245 billion for affiliated and external establishments as well as person investors. With more than 40 decades of background in asset management, Voya Financial investment Administration has the experience and methods to present customers with investment options with an emphasis on equities, preset cash flow, and multi-asset strategies and remedies. Voya Financial commitment Management was named in 2015, 2016, 2017, 2018, 2019 and 2020 as a “Best Destinations to Work” by Pensions & Investments journal. For a lot more details, pay a visit to voyainvestments.com. Comply with Voya Financial commitment Administration on Twitter @VoyaInvestments.

Search phrase: NEW YORK UNITED STATES NORTH America

Industry Search phrase: BANKING OTHER Specialist Solutions Specialist Expert services FINANCE

Supply: Voya Financial, Inc.

Copyright Business Wire 2021.

PUB: 02/12/2021 10:30 AM/DISC: 02/12/2021 10:30 AM