MetLife Investment Management Originates $15.7 Billion in Private Placement Debt and Private Structured Credit In 2020

Rhea-AI Summary

MetLife Investment Management reported originating $15.7 billion in private placement debt and structured credit across 215 transactions for 2020, including $3.6 billion for third-party clients. The portfolio grew to $102.1 billion as of December 31, 2020. Significant origination activities occurred in March and April, with $4.0 billion being completed during that period. The firm is focusing on supporting issuers and investors as the economy recovers from the pandemic.

Positive

• Originated $15.7 billion in private placement debt and structured credit in 2020.
• Portfolio growth to $102.1 billion by year-end 2020.
• Strong corporate relationships contributed to significant transaction origination.

Negative

• None.

MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), today announced it originated $15.7 billion in private placement debt and private structured credit across 215 transactions in 2020. This included $3.6 billion of investments originated on behalf of third party institutional clients. This origination activity, which added 85 new credits, helped grow MIM’s total private placement debt and private structured credit portfolio to $102.1 billion¹ as of December 31, 2020.

“During a year in which companies all over the world were impacted by the pandemic, we continued to provide timely, bespoke financing solutions for issuers that provided liquidity and financial certainty during difficult times,” said Nancy Mueller Handal, head of Private Fixed Income & Alternatives at MIM.

MIM’s private placement origination for 2020 included $9.0 billion, $3.7 billion, and $3.0 billion in corporate, infrastructure and structured credit transactions, respectively. Notably, nearly $4.0 billion of this origination was completed in March and April last year.

John Wills, global head of Private Placements at MIM, noted: “Our strong corporate relationships and ability to source attractive financing and investment opportunities for our clients around the world were key factors in a strong year for MIM. During the worst of the pandemic-driven dislocation, MIM continued to work closely with new and existing issuers to provide solutions that helped companies and equity sponsors pay down debt, boost liquidity and operational cash, and ultimately, create a financial buffer against the uncertainty caused by the pandemic.”

Scott Waterstredt, head of Private Structured Credit at MIM, added: “Macro-economic uncertainty due to the pandemic effectively closed the broadly-syndicated, asset-backed market for a period during the year. The private structured credit team worked with a number of asset owners to provide financing and liquidity solutions that were attractive for both the asset owner and our clients.”

Corporate origination was well-diversified by industry sector, led by investment in the Professional Services and Healthcare & Life Sciences sectors, which, together, accounted for roughly one-quarter of the $9.0 billion in origination. Infrastructure origination was led by Renewable Power transactions, which accounted for approximately one-third of the $3.7 billion in origination, supporting sustainability objectives. Private structured credit investments focused on residential mortgage and alternative asset financing transactions.

Mueller Handal concluded: “Looking ahead, we will continue to support issuers and investors with solutions that ensure they manage through the later stages of the pandemic, and we look forward to providing expansion capital for new opportunities as global economic growth resumes post-pandemic.”

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, 2020 had $659.6 billion² in total assets under management.

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 its individual and institutional customers navigate their changing world. 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, such as “continue,” “ensure,” look forward,” “looking ahead,” “resumes,” “seek,” and “will,” 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 has no obligation to correct or update any of these statements.

Endnotes

¹ At estimated fair value. Includes all corporate and infrastructure 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.

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FAQ

What were MetLife's private placement origination totals for 2020?

MetLife Investment Management originated $15.7 billion in private placement debt and structured credit across 215 transactions in 2020.

How much of MetLife's origination was for third-party clients?

Out of the $15.7 billion originated, $3.6 billion was from third-party institutional clients.

What is the current size of MetLife's private placement debt portfolio?

As of December 31, 2020, MetLife's private placement debt and structured credit portfolio grew to $102.1 billion.

When was the peak origination period for MetLife in 2020?

Nearly $4.0 billion in origination occurred in March and April 2020.

What sectors did MetLife's origination focus on?

The corporate origination was diversified, primarily focusing on Professional Services and Healthcare & Life Sciences sectors.