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MetLife Investment Management Originates $15.1 Billion in Private Placement Debt and Private Structured Credit In 2022
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MetLife Investment Management (MIM) reported a successful year in 2022, originating $15.1 billion in private placement debt and structured credit through 245 transactions. Total assets under management reached $89.5 billion as of December 31, 2022. Corporate placements included $8.5 billion in corporate, $4.7 billion in infrastructure, and $1.9 billion in structured credit transactions. MIM added 94 new issuers and expanded its focus on floating-rate origination, which constituted over 25% of infrastructure investments. Despite market challenges, MIM's strong global relationships and specialized teams position it for continued growth in the private placement sector.
Positive
Origination of $15.1 billion in private placement debt and structured credit.
Total assets under management at $89.5 billion.
Increased corporate placement origination with 94 new issuers.
Diversification in corporate financing, including $3.1 billion from UK and European issuers.
Record floating-rate origination volume at over 25% for infrastructure investments.
Negative
Near-term challenges due to elevated interest rates and macroeconomic headwinds.
WHIPPANY, N.J.--(BUSINESS WIRE)--
MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), today announced it originated $15.1 billion in private placement debt and private structured credit across 245 transactions in 2022. This included $4.1 billion of investments originated on behalf of unaffiliated institutional clients. MIM’s total private placement assets under management stood at $89.5 billion as of December 31, 2022.1
MIM’s private placement origination for 2022 included $8.5 billion, $4.7 billion, and $1.9 billion in corporate, infrastructure, and structured credit transactions, respectively, and added 94 new issuers to the portfolio.
“While an elevated interest rate environment and macroeconomic headwinds present near term-challenges for the capital markets, our global relationships combined with our team of experienced sector and structuring specialists position us well to continue to source and execute on financing opportunities tailored to meet the needs of our clients and issuers,” said Nancy Mueller Handal, global head of Private Fixed Income and Alternatives at MIM.
Corporate private placement origination in 2022 continued to be diversified across a range of industries. Origination included over $3.1 billion in financing for U.K. and European issuers, reflecting approximately 37% of total origination for 2022. Credit tenant leases (CTLs) accounted for over $935 million of 2022’s origination, more than a 50% increase versus 2021’s CTL origination volume, reflecting MIM’s continued capability in sourcing and executing on opportunities in this sector. Investment also included $520 million in long-term, taxable loans made to three not-for-profit U.S. hospital systems in the second half of 2022.
“MIM’s corporate private placements team was able to grow its origination volume in 2022 despite a broader slowdown in capital markets activity due to the strength of our relationships with traditional agent banks and boutique advisory firms as well as MIM’s direct and propriety origination platform,” commented Jennifer Potenta, global head of Corporate Private Placements, Private Structured Credit and Strategy at MIM.
Infrastructure origination in 2022 was also well diversified, led by $1.3 billion of investment in transportation-related assets, including rail, port, airport, toll road, and marine projects. Financing for communication, renewable power, social housing assets and projects, and water utilities rounded out the top five areas of infrastructure investment in 2022.
Notably, floating-rate origination volume represented over 25% of the infrastructure team’s investment in 2022, the highest annual percentage recorded by MIM since 2014. “Given project sponsors’ desire to manage recent interest rate volatility, MIM’s infrastructure group partnered with sponsors and agents on over 20 floating-rate transactions in 2022,” said John Tanyeri, head of Infrastructure/Project Finance at MIM.
MIM’s team focused on private structured credit executed on a diverse pipeline of deals across residential credit, Commercial Property Assessed Clean Energy, low-income housing, energy and alternatives financing during a volatile year in which issuers increasingly looked for private market solutions with certainty of execution.
About MetLife Investment Management
MetLife Investment Management, the institutional asset management business of MetLife, Inc. (NYSE: MET), is a global public fixed income, private capital and real estate investment manager providing tailored investment solutions to institutional investors worldwide. MetLife Investment Management provides public and private pension plans, insurance companies, endowments, funds and other institutional clients with a range of bespoke investment and financing solutions that seek to meet a range of long-term investment objectives and risk-adjusted returns over time. MetLife Investment Management has over 150 years of investment experience and, as of December 31, 2022, had $579.8 billion in total assets under management. 2
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.
Forward-Looking Statements
The forward-looking statements in this news release, using words such as “continue” and “seek,” are based on assumptions and expectations that involve risks and uncertainties, including the “Risk Factors” MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. MetLife’s future results could differ, and it does not undertake any obligation to publicly correct or update any of these statements.
Endnotes
1 At estimated fair value. Includes all corporate and infrastructure private placement debt (collectively, private placement debt) and private structured credit investments managed by MIM.
2 Total assets under management is comprised of all MetLife general account and separate account assets and unaffiliated/third party assets, at estimated fair value, managed by MIM.
What was the total private placement debt originated by MetLife in 2022?
MetLife originated $15.1 billion in private placement debt and structured credit in 2022.
How much were MetLife's total assets under management as of December 31, 2022?
As of December 31, 2022, MetLife's total assets under management stood at $89.5 billion.
What types of transactions contributed to MetLife's private placement origination in 2022?
In 2022, MetLife's private placement origination included $8.5 billion in corporate, $4.7 billion in infrastructure, and $1.9 billion in structured credit transactions.
How many new issuers were added to MetLife's portfolio in 2022?
MetLife added 94 new issuers to its portfolio in 2022.
What percentage of MetLife's infrastructure investments was floating-rate in 2022?
Over 25% of MetLife's infrastructure investments in 2022 were floating-rate transactions.
