Aon Raises Nearly $350 Million for its Opportunistic Credit Investment Strategy

Rhea-AI Summary

Aon plc announced the successful raising of $349.9 million from U.S. institutional investors for its Opportunistic Credit strategy, which focuses on public corporate credit, structured products, stressed credit, and real estate debt. This strategy aims to leverage Aon's research capabilities to capture value amid global credit market dislocations. Aon Investments, consisting of over 300 professionals managing more than $2 trillion in assets, will target liquidity-driven assets and distressed credit, providing investors with potential attractive returns in a volatile market.

Positive

• Raised $349.9 million from U.S. institutional investors for the Opportunistic Credit strategy.
• Focus on capturing value in dislocated credit markets could lead to high returns.
• Aon Investments has over 300 professionals managing more than $2 trillion in assets.

Negative

• Investment strategy involves liquidity risk, which may deter some investors.
• Focus on distressed assets indicates potential market volatility affecting performance.

CHICAGO, Aug. 4, 2020 /PRNewswire/ -- Aon plc, a leading global professional services firm providing a broad range of risk, retirement and health solutions, today announced that Aon Investments USA Inc. ("Aon Investments") raised $349.9 million from U.S. institutional investors for its Opportunistic Credit strategy.

The Opportunistic Credit strategy targets public corporate and structured credit, stressed credit and real estate debt. It will provide a flexible approach of allocating across a wide range of securities and markets where managers see the greatest value.

"We appreciate the support of our investors and welcome many new investors in this endeavor," said Steve Voss, senior partner and head of Aon Investments for North America. "The Opportunistic Credit strategy will draw on Aon's broad research capabilities to take advantage of global dislocations in the credit markets to generate returns that are compelling on both an absolute and risk-adjusted basis. We are confident in the global platform and team we have built to find these opportunities to drive value for our investors in a quickly evolving marketplace."

Opportunistic Credit is a short- to medium-term strategy that will evolve over time as the business cycle plays out. The investment is appropriate for clients who are willing to take liquidity risk in exchange for attractive return potential.

"The global COVID-19 pandemic led to significant dislocations in markets," said Russ Ivinjack, senior partner for Aon Investments. "The economic downturn has increased the number of companies in need of additional financing to weather the storm. We look at the opportunity to focus on those assets that remain disconnected from their fundamentals or continue to trade at distressed levels, particularly in credit."

Aon has identified three credit strategies that offer significant upside:

-  Liquidity-driven dislocations that typically react quickly to market stress in leveraged loans, high yield bonds, collateralized loan obligations and asset-backed securities.
-  Stressed and distressed credit that focus on businesses and securities impacted by the financial and economic crisis.
-  Real estate credit that invests in targeted sectors, such as single-asset-single-borrower and K-series securities, that offer attractive valuations.

Aon Investments consists of more than 300 investment consulting professionals with more than 480 clients representing aggregate assets more than $2 trillion (as of December 31, 2019). For more information, visit https://www.aon.com/retirement-and-investment-solutions/investment.jsp.

About Aon
Aon plc (NYSE:AON) Aon is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. 

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Media Contact:
Robert Elfinger, 312.381.0071, robert.elfinger@aon.com 

Investment advice and consulting services provided by Aon Investments USA Inc. ("Aon"). The information contained herein is given as of the date hereof and does not purport to give information as of any other date. The delivery at any time shall not, under any circumstances, create any implication that there has been a change in the information set forth herein since the date hereof or any obligation to update or provide amendments hereto.

This document is not intended to provide, and shall not be relied upon for, accounting, legal or tax advice or investment recommendations. Any accounting, legal, or taxation position described in this presentation is a general statement and shall only be used as a guide. It does not constitute accounting, legal, and tax advice and is based on Aon's understanding of current laws and interpretation.

This document is intended for general information purposes only and should not be construed as advice or opinions on any specific facts or circumstances. The comments in this summary are based upon Aon's preliminary analysis of publicly available information. The content of this document is made available on an "as is" basis, without warranty of any kind. Aon disclaims any legal liability to any person or organization for loss or damage caused by or resulting from any reliance placed on that content. Aon reserves all rights to the content of this document. No part of this document may be reproduced, stored, or transmitted by any means without the express written consent of Aon.

Aon Investments USA Inc. is a federally registered investment advisor with the U.S. Securities and Exchange Commission. Aon is also registered with the Commodity Futures Trading Commission as a commodity pool operator and a commodity trading advisor, and is a member of the National Futures Association. The Aon ADV Form Part 2A disclosure statement is available upon written request to:

Aon Investments USA Inc.
200 E. Randolph Street
Suite 700
Chicago, IL 60601
ATTN: Aon Compliance Officer
© Aon plc 2020. All rights reserved.

 

 

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SOURCE Aon plc

FAQ

What amount did Aon raise for its Opportunistic Credit strategy?

Aon raised $349.9 million from U.S. institutional investors for its Opportunistic Credit strategy.

What is the focus of Aon’s Opportunistic Credit strategy?

The strategy targets public corporate credit, structured products, stressed credit, and real estate debt.

How does Aon plan to generate returns for investors?

Aon plans to leverage its research capabilities to capitalize on global dislocations in credit markets.

What type of investments does Aon's Opportunistic Credit strategy involve?

It involves liquidity-driven dislocations, stressed and distressed credit, and real estate credit.

What is the experience level of Aon's investment team?

Aon Investments consists of more than 300 professionals with expertise in managing over $2 trillion in assets.