Allianz shakes up alternative investments structure

The German insurance group is set to merge its fund of funds, infrastructure and renewable energy businesses into its Allianz Capital Partners unit.

German insurance giant Allianz is to merge its indirect private equity, infrastructure and renewable energy businesses into its 11-year-old private equity division, Allianz Capital Partners.

The restructuring separates its real estate business from the other alternative asset classes, which will now all share a common organisational structure, as well as back office resources and an executive committee responsible for the whole business.

An Allianz spokesperson said the merger is intended to form a more forceful unit in the alternative assets market, with a clearer structure that makes the group better prepared for future possibilities in the space. The firm said it sees growing opportunities particularly in the private equity, infrastructure, renewable energy and mezzanine financing sectors.

Previously, Allianz had separate entities for each different alternative asset class. This included Allianz Specialised Investments in the renewable energy sector, Allianz Infrastructure Partners, Allianz Real Estate and private equity fund of funds Allianz Private Equity.

Current Allianz Alternative Assets Holding chief executive Karl Ralf Jung will become chairman of Allianz Capital Partners’ new executive committee, with current Thomas Pütter to concentrate on portfolio investments under the new structure, in addition to chairing the advisory board and investment committee based in London.

Groundwork for the restructuring is understood to have begun at the beginning of the year. Allianz will apply to the German authorities regarding the merger in August, with the new structure expected to come into force by the end of September.

Allianz Infrastructure Partners is part of a consortium reported to be a leading contender to acquire Vattenfall’s German transmission grid.