Innovative income and diversification opportunities

As bank disintermediation continues to dominate private debt, we offer clients access to a diverse range of innovative solutions in guaranteed and secured lending.  Deals may include trade finance, fund finance, aviation loans, swap repackagings, CLOs , SRT transactions and other specialty assets with a range of tenors and risk profiles, denominated in GBP, EUR, and USD. We can tailor portfolios to meet clients' specific risk mitigation and matching-adjustment requirements.

The strength and depth of our credit research team is leveraged to provide robust governance and we follow a disciplined investment process that incorporates, but is not bound by, environmental, social and governance criteria. Many trades enable us to use underlying assets as collateral (e.g. aircraft or real estate) for greater security against transaction risks. Our expertise includes actuarial and derivatives pricing with strong risk controls for pension schemes and insurance clients.

Why invest?

Clarity for investors seeking long-dated cash flows. Our investment philosophy is focused on managing the downside, given the asymmetric risk profile of debt investing. As such, we lend against well-structured assets with security over the underlying assets and/or cashflows. We place high value on financial covenants, and avoid highly subordinated debt positions. We also embrace newer sectors and structures that may offer ‘complexity’ or ‘novelty’ premia.

Bespoke structuring

Specially-adapted structures can help investments meet defined cash-flow and eligibility criteria.

Risk mitigation

With strong risk controls in place for pension schemes and insurance clients, we frequently use underlying assets as collateral, helping improve recovery rates in the event of default.

Diversification

Historic performance shows diversification benefits versus liquid market opportunities.

Illiquidity premium

The illiquid nature of the assets typically commands a premium over comparable listed credit.

Key risks of structured finance

Investment risk

The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

Illiquidity risk

Certain assets could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.

Market risk

Changing market dynamics may undermine the relative attractiveness of structured transactions.

Complexity risk

Assessing risk implications of multi-layered transactions is challenging.

Investment insights

Investment thinking that brings together the collective insight of Aviva Investors’ teams from across the globe on the key themes influencing markets.

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Structured finance team

Meet our structured finance investment team.

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Private markets

As one of Europe’s largest private markets investment managers, we have the scale to access the full depth and breadth of private markets.

Private debt

We finance bespoke structured finance and senior private corporate debt transactions, seeking to meet a range of client outcomes.