Le mie ricette per la real estate communityAXA IM Alts, a global leader in alternative investments with over €186 billion of assets under management, raised c. €15 billion of net new money in 2022, reflecting the strength of AXA IM Alts’ global offering and its ability to adapt to changing market conditions and evolving investor requirements.
Infrastructure and Private Debt & Alternative Credit strategies will remain a key focus in 2023
Following a strong 2022, AXA IM Alts expects to increase capital raising for both its infrastructure and debt strategies in 2023, as the business continues to respond to and match shifting investor requirements. This reflects both the changing macroeconomic environment, as highlighted by higher interest rates, rising inflation and regulatory pressures on the central banks, as well as underlining AXA IM Alts’ agility in meeting investor needs throughout the investment cycle. AXA IM Alts will also target the continued growth of its newly launched Private Wealth offering, where 17% of revenues were generated by third-party capital raised in 2022, with private investors still underweight in alternative asset classes.
Capital allocation reflects investor appetite for diversification
c. €3.6 billion of net new money was also raised for AXA IM Alts’ Real Estate Equity strategies, reflecting continued investor demand for stable and diversified assets, and helping the business retain its position as Europe’s largest real estate investment manager. The majority of this capital was directed towards AXA IM Alts’ core, logistics and residential real estate open ended fund range for institutional clients, with those three vehicles now exceeding €11 billion in gross assets under management. Capital was also directed into development strategies, which are focused on the ground-up development or upgrading of older buildings into high-quality, sustainable primarily residential and office accommodation. AXA IM Alts remains particularly active in real estate development, with c. €12 billion of development projects currently in the pipeline and more than €21 billion of projects executed since 2000.
AXA IM Alts raised c. €3.5 billion of net new money for its Infrastructure strategies, its fastest growing business as investors increasingly turn to stable alternative assets that offer resilient protection from inflation, with high investor demand expected to continue throughout 2023. 2022 was a very active year for infrastructure, in terms of both capital raised and deployment, with strategic investments into one of the world’s largest offshore wind farms, Hornsea 2 in the U.K., as well as lyntia Networks, Spain’s leading fibre business.
AXA IM Alts also strengthened its Private Equity offering through the launch of its €500 million Global Health Private Equity strategy, which has already raised over half of its target capital. The business’ strategic partnership with iCapital saw this strategy become the first SFDR Article 9 private equity product listed on iCapital’s platform, marking a key milestone in AXA IM Alts’ ambition to deliver greater private market access to wealth managers and private clients. Additionally, the business expanded its Natural Capital platform with the launch of a €500 million strategy focusing on financing activity that protects vulnerable or high value natural habitats from deforestation.
Florence Dard, Global Head of Client Group at AXA IM Alts, commented: “New geopolitical and macroeconomic risks alongside higher inflation and interest rates saw the market change dramatically last year. Against this backdrop, the significant volume of net new money raised during 2022 is a strong endorsement of our innovative and comprehensive global offering and ability to adapt strategies to secure the best outcomes for our clients as market conditions evolve.
“Alongside our historical core, sectorial and development real estate strategies, in 2023 we will also focus on further growth in the Infrastructure and Private Debt & Alternative Credit sectors. Another key focus will be on building on the momentum achieved by our newly launched Private Wealth platform, where we see a huge opportunity to meet the strong demand for alternative investments from generally under allocated private investors. With 40% of capital raised from outside of Europe, we will also continue to grow the geographic diversity of our third party client investor base in the year ahead, with a strategic focus on North America and Asia Pacific markets specifically.”
Source : Company