MUFG and DWS Group Launch Private Financing Strategic Venture for Project and Infrastructure Asset Investments

Rhea-AI Summary

MUFG and DWS Group have announced a strategic venture to enhance their infrastructure and alternative credit investment capabilities. The partnership targets $1 billion of infrastructure and project finance transaction volume annually. DWS' U.S. Infrastructure Debt Platform currently manages $4.7 billion of committed capital and has made over 275 investments since 2014.

MUFG, ranked #1 in Project Finance loan origination in the Americas for over a decade, currently manages more than 300 credit facilities for infrastructure assets. The collaboration aims to strengthen both companies' positions in energy transition and digital infrastructure financing, leveraging DWS's asset management expertise and MUFG's market leadership in infrastructure finance.

Positive

• Strategic venture targets $1 billion annual infrastructure and project finance transaction volume
• DWS manages $4.7 billion in committed capital through its U.S. Infrastructure Debt Platform
• MUFG holds #1 ranking in Project Finance loan origination in Americas
• MUFG currently agents over 300 credit facilities for infrastructure assets

Negative

• None.

Insights

Financial Analyst

This strategic venture between MUFG and DWS represents a significant expansion in the infrastructure financing space, with an ambitious target of $1 billion in annual transaction volume. The partnership leverages MUFG's proven track record as the #1 Project Finance loan originator in the Americas and DWS' extensive infrastructure debt platform managing $4.7 billion in committed capital.

The collaboration strengthens both firms' market positions - MUFG gains enhanced distribution capabilities for their infrastructure deals, while DWS expands their investment opportunities in this growing sector. This is particularly timely given increasing infrastructure spending needs across energy transition and digital infrastructure sectors.

The venture should boost MUFG's fee income through enhanced distribution capabilities while maintaining their dominant position in project finance. For institutional investors, this creates new opportunities to access infrastructure investments through two highly experienced partners.

Market Research Analyst

The infrastructure financing market is experiencing significant growth, driven by energy transition initiatives and digital infrastructure expansion. This partnership strategically positions both firms to capitalize on these trends. DWS brings deep expertise with over 275 infrastructure investments since 2014, while MUFG's extensive portfolio of 300+ credit facilities provides a robust pipeline for future deals.

The venture addresses growing institutional investor demand for infrastructure assets, which typically offer stable, long-term returns with inflation protection characteristics. The timing is opportune given the global focus on infrastructure modernization and energy transition projects. The combined capabilities of both firms create a powerful platform for capturing market share in this expanding sector.

NEW YORK, Dec. 4, 2024 /PRNewswire/ -- Mitsubishi UFJ Financial Group (MUFG), a global leader in financial services, and asset management firm DWS Group (DWS) have launched a strategic venture designed to enhance their respective capabilities in underwriting and distributing infrastructure and alternative credit investments.

The parties are initially targeting $1 billion of infrastructure and project finance transaction volume per year. DWS' U.S. Infrastructure Debt Platform, managing $4.7 billion of committed capital across funds and CLOs, has been at the forefront of infrastructure financing having made more than 275 investments across infrastructure sub-sectors since 2014. The collaboration marks a significant milestone in DWS' continued expansion into the infrastructure and alternative credit space.  MUFG has ranked #1 in industry league tables for Project Finance loan origination in the Americas for more than a decade, and currently agents more than 300 credit facilities for infrastructure assets in the power, energy, digital, and transportation sectors. 

"The alliance with DWS highlights MUFG's commitment to delivering tailored capital and advisory solutions that meet our clients' evolving needs in energy transition and the expanding digital infrastructure sector," said Erik Codrington, Head of Project Finance-Americas for MUFG.

"Our collaboration with DWS, a global asset manager, strengthens our ability to deliver impactful financing and distribution outcomes for our global project finance and infrastructure clients," said Art de Peña, Head of International Private Side Distribution at MUFG. Echoing this sentiment, Anja Sharma, Managing Director in Capital Markets at MUFG, stated: "This venture underscores MUFG's commitment to fostering trusted and collaborative relationships with clients and investors, which are fundamental to driving transformative and effective financing solutions for all parties involved.

Jonathan Newman, Head of U.S. Infrastructure Debt at DWS, expressed enthusiasm about the venture's potential: "We are excited to deepen our relationship with MUFG, a recognized market leader in infrastructure finance, and look forward to designing financing solutions tailored to meet institutional market demands. Leveraging the asset class knowledge, origination capabilities, and institutional relationships of both firms, we look forward to creating value for clients and supporting subsectors critical to economic growth."

About MUFG and MUFG Americas
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,100 locations in more than 50 countries. MUFG has nearly 160,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to be "the world's most trusted financial group" through close collaboration among our operating companies and flexibly respond to all the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG's shares trade on the Tokyo, Nagoya, and New York stock exchanges.

MUFG's Americas operations, including its offices in the U.S., Latin America, and Canada, are primarily organized under MUFG Bank, Ltd. and subsidiaries, and are focused on Global Corporate and Investment Banking, Japanese Corporate Banking, and Global Markets. MUFG is one of the largest foreign banking organizations in the Americas. For locations, banking capabilities and services, career opportunities, and more, visit www.mufgamericas.com.

About DWS 
DWS Group (DWS), with EUR 963bn of assets under management (as of September 2024) and approximately 4,700 employees globally aspires to be one of the world's leading asset managers. Building on more than 60 years of experience, it has a reputation for excellence in Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, and innovation across a full spectrum of investment disciplines. DWS offers individuals and institutions access to its strong capabilities across Active, Passive and Alternative Investments.

Contact:
Brendan Moffitt brendan.moffitt@dws.com

Media Contact:
Alicia Faugier
afaugier@us.mufg.jp

 

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SOURCE MUFG Bank, Ltd.

FAQ

What is the annual transaction volume target for MUFG and DWS Group's new venture?

The strategic venture between MUFG and DWS Group is initially targeting $1 billion of infrastructure and project finance transaction volume per year.

How much committed capital does DWS's U.S. Infrastructure Debt Platform manage?

DWS's U.S. Infrastructure Debt Platform manages $4.7 billion of committed capital across funds and CLOs.

How many infrastructure investments has DWS made since 2014?

DWS has made more than 275 investments across infrastructure sub-sectors since 2014.

How many credit facilities does MUFG currently agent for infrastructure assets?

MUFG currently agents more than 300 credit facilities for infrastructure assets in the power, energy, digital, and transportation sectors.