WHIPPANY, NJ, August 25, 2022–(BUSINESS WIRE)–MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), today announced that it has issued $9.2 billion in debt private placement and private structured credit for the first half of 2022 through 137 transactions. This was a record for MIM and included $2.3 billion in investments created on behalf of unaffiliated institutional clients. MIM’s total private equity assets under management were $90.5 billion as of June 30, 2022.1
In the first half of 2022, MIM originated $5.3 billion in corporate private placements, $2.6 billion in infrastructure private placement debt, $1.3 billion in private structured credit transactions and added 53 new credits to the portfolio.
The origination of corporate private placements in the first half of 2022 spanned a wide range of industries and geographies and encompassed a variety of financing structures.
Major industry sectors included REITs, financial services, transportation, industrials, and food and beverages.
More than 40% of corporate private placement issuances came from issuers based outside the US, including more than $1.9 billion of funding provided to UK and European issuers.
Over $600 million in capital lease (CTL) investments as MIM continues to see strong relative value offered by this financing structure.
Around $500 million of green bonds and $100 million of sustainability-linked notes, the latter linked to reducing carbon emissions, were purchased in 13 deals issued by US-based issuers and in Europe.
The origination of MIM’s infrastructure private placement in the first half of 2022 increased by more than 70% in transaction value compared to the same period of the previous year, as the market continued to rebound from the lingering effects of the pandemic world.
The infrastructure package was well diversified across end markets, led by nearly $740 million in investments in transportation-related projects and assets. Social housing and communications projects round out the three main areas of investment, representing approximately $300 million and $250 million in funding, respectively.
Nearly $1.4 billion to UK and European issuers, which accounted for more than 50% of infrastructure output in the first half of 2022, significantly more than in the first half of each of the past five years. We believe the relative increase in infrastructure activity in these markets has been driven by pent-up demand related to the pandemic of refinances and new debt. The European investment included direct financing for an Austria-based rail operator, with proceeds from the transaction primarily to fund new electric rail vehicles to expand the operator’s night train network, which offer an environmentally friendly alternative to air travel in Europe.
MIM was also the sole lender in a financing to support the decommissioning of two coal-fired power plants in New Jersey. The transaction reinforced MIM’s long-term commitment to energy transition initiatives that promote environmental sustainability and decarbonization.2
Private structured credit production volume for the first half of 2022 increased by more than 50% compared to the same period in 2021. More than 90% of this volume was executed directly with issuers rather than through a syndicated channel.
Nancy Mueller Handal, Head of Private Fixed Income & Alternatives at MIM, said: “MIM’s record production in the first half of 2022 is a testament to the origination and structuring capabilities of our team and our global network of relationships. We will use our established platform to continue to support issuers and our clients in an evolving economic landscape.”
About MetLife Investment Management
MetLife Investment Management, the institutional asset management business of MetLife, Inc. (NYSE: MET), is a global public fixed income, private equity and real estate investment manager that provides investment solutions tailored to institutional investors around the world. MetLife Investment Management offers public and private pension plans, insurance companies, endowments, funds and other institutional clients a range of tailored investment and financing solutions that aim to meet a range of long-term investment goals and risk-adjusted returns over time. MetLife Investment Management has over 150 years of investment experience and, as of June 30, 2022, had $590.9 billion in assets under management. 3
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional clients build a confident future. Founded in 1868, MetLife is present in more than 40 markets worldwide and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.
The forward-looking statements contained in this press release, using words such as “believe”, “continue”, “seek” and “will”, are based on assumptions and expectations that involve risks and uncertainties, including “Risk Factors” MetLife, Inc. described in its filings with the United States Securities and Exchange Commission. MetLife’s future results could differ, and it undertakes no obligation to publicly correct or update any of these statements.
1 At estimated fair value. Includes all private corporate and infrastructure debt placements and private structured credit placements managed by MIM.
2 The specific investments described here are intended to provide examples of recent transactions within the infrastructure asset class. These transactions have not been selected to demonstrate specific prior profitability recommendations made by MIM and there is no guarantee that these investments will not suffer losses or that they will continue to be held by clients of M.I.M. These descriptions do not constitute a recommendation for the securities identified and do not take into account the particular investment objectives, financial situation or needs of potential investors or clients.
3 Total assets under management include all MetLife general account and segregated account assets and unaffiliated/third party assets, at estimated fair value, managed by MIM.
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