Wealth, asset management titans team up for UHNW private markets venture

Two major investment firms are aiming at the $1.5 trillion global private debt market, bringing together their respective expertise in wealth management and asset management.

AlTi Global Inc. a Nasdaq-listed independent global wealth manager with more than $72 billion AUM plans to form a joint venture with Allianz X, enabling a strategic partnership with asset management business Allianz Global Advisors.

Earlier this year AlTi announced that Allianz X would invest up to $300 million in its business via one of its affiliates, alongside investment from Constellation Wealth Capital, to help it boost its presence in the ultra-high-net-worth wealth space.

“The formation of our JV with AlTi just months after our initial investment is a first building block of what we can achieve together in the expanding wealth management sector,” commented Nazim Cetin, CEO of Allianz X. “We’re poised to revolutionize access to the private markets, initially through private debt, and we are confident that investing alongside Allianz will unlock new opportunities for AlTi, Allianz, and the broader UHNW market segment.”

The JV is focused on providing a leading private markets offering for the ultra-high-net-worth wealth segment, initially centered on the private debt markets, and leveraging the experience of both firms' skilled managers. With the benefits of scale, the JV will offer low minimum ticket sizes.

Michael Tiedemann, CEO of AlTi Tiedemann Global, said the AlTi-Allianz Private Debt Program sets a new benchmark in the UHNW wealth management industry.

“We are delighted to offer our clients unique access to Allianz’s world-class network of third-party managers at attractive terms and with additional access to co-investments and secondaries,” he said. “We believe the combined resources of our platforms will provide current and prospective clients with an offering that is unmatched in the alternatives investment space.”

The program will invest in various strategies, regions, segments, and risk-return profiles with a semi-liquid evergreen structure. The formation of the JV is subject to the completion of definitive agreements and obtaining necessary regulatory approvals.

“Private debt’s diversification benefits, coupled with its attractive risk-adjusted returns, make it a compelling component to investors’ portfolios,” said Tobias Pross, CEO of Allianz Global Investors. “Through our strategic partnership, we are able to bring some of the best investment opportunities in private markets to the most discerning and dynamic owners of capital in the world. We believe this is only the beginning, as we seek to expand our joint offerings in private markets in the months and years to come.”

The wider Allianz business includes bond manager Pimco which saw strong inflows in recent months and helped the parent to expectation-beating results.