Golding Capital Partners (Golding), one of Europe’s leading independent asset managers for private equity, private debt and infrastructure, closed two funds with record volumes at year-end 2018. Golding Private Debt 2016 received commitments of more than €580 million at its final close, making it the largest private debt investment programme launched by Golding to date. Golding Infrastructure Co-Investment 2016 held its final close at a volume of €336 million, significantly exceeding its original target of €300 million.

Record volume for Golding Private Debt 2016

With final commitments of more than €580 million, Golding Private Debt 2016 was again significantly larger than its predecessor, beating all previous fundraising efforts in the key private debt segment. The current investment programme was very popular with existing clients, who alone were responsible for some 80 per cent of the total volume.

Golding Private Debt 2016 provides acquisition and expansion capital for mid-market companies in Western Europe and North America, primarily in the form of senior debt. Golding also stabilises the fund portfolio for phases of market uncertainty and volatility with additional investments in opportunistic credit strategies. The aim is to build a broadly diversified portfolio of around 300 underlying transactions. With commitments to 15 primary funds, secondary and co-investment transactions, the portfolio construction is already well advanced. Some 20 per cent of commitments have been drawn down from investors to date.

With this strategy investors benefit from varying yield components, including equity-like elements in addition to attractive current interest payments. Hence all 42 institutional investors – including pension funds, insurance companies, savings banks, cooperative banks and non-profit organisations – already received an initial distribution in 2018 equating to a high single-figure percentage of their committed capital.

Managing Partner Hubertus Theile-Ochel noted: “We are the clear market leader in Germany in the asset class private debt and continue to see strong interest from our investors. They appreciate the fact that risk-adjusted returns are more attractive than for the more liquid leveraged loans, bonds and traditional fixed-income instruments. At the request of our investors we are planning to launch the follow-on fund this year.”

“Golding has been an active investor in the asset class private debt for more than 16 years. Our above-average track record is clear evidence of our expertise”, said Founder and Managing Partner Jeremy Golding, underlining the specialist expertise of the independent asset management firm. “We currently manage more than €3 billion in this asset class and have now invested in a total of over 100 primaries, secondaries and co-investments in Europe and North America.”

Golding Infrastructure Co-Investment 2016 oversubscribed at final close

The investment programme Golding Infrastructure Co-Investment 2016 offers institutional investors direct access to quality-approved co-investments in the infrastructure segment for the first time. It closed successfully at €336 million at year-end 2018, exceeding the original target of €300 million. With the launch of this product Golding has reinforced its position as one of the leading providers of infrastructure investments in Europe and is one of the first European managers to offer its investors this type of investment.

Golding Infrastructure Co-Investment 2016 is designed for investors seeking to commit capital rapidly and gain direct exposure to infrastructure projects without foregoing the advantages of diversification. “As a large, established investor in infrastructure funds we have a wide portfolio of existing commitments and a strong network of outstanding managers. These are key conditions for creating a pipeline of attractive co-investment opportunities”, says Dr Matthias Reicherter, Partner and CIO at Golding.

Portfolio construction is progressing rapidly, with six out of a total of 12 to 14 planned infrastructure co-investments already completed, including transactions in transport, energy and logistics. Nearly 40 per cent of commitments have now been drawn down from investors, which are primarily insurance companies, pension funds and public-sector banks.

“Strong demand from institutional investors is a clear indication that with Golding Infrastructure Co-Investment 2016 we have met a real need in the market”, confirms Hubertus Theile-Ochel, Managing Partner at Golding. “Our solution is tailor-made for investors seeking to enhance their existing infrastructure portfolio with solid infrastructure assets from Europe and North America.”