Voya Investment Management announces first close of new infrastructure debt fund focused on renewable energy project financing

Rhea-AI Summary

Voya Investment Management (VOYA) announced the first close of a new infrastructure debt fund with over $300 million in commitments, focusing on renewable energy project financing. Co-heads Tom Emmons and Edward Levin noted significant demand for late-stage financing in this sector. The firm has made three renewable energy investments to date, primarily focusing on wind and solar projects. The new team's expertise enhances Voya IM's $70+ billion private and alternative investments portfolio, reinforcing its position in the growing renewable energy infrastructure market.

Positive

• First close of new infrastructure debt fund with over $300 million committed.
• Focus on renewable energy projects aligns with demand for late-stage financing.
• Three renewable energy investments made, with plans for 12 to 18 more.
• Strong institutional investor confidence in Voya IM's value proposition.
• Existing $70+ billion portfolio enhances growth potential.

Negative

• None.

Voya Investment Management (Voya IM), the asset management business of Voya Financial, Inc. (NYSE: VOYA), announced today that its private credit platform completed the first close of a new infrastructure debt fund focused on project financing in the renewable energy space. With over $300 million in commitments, the first close comes on the heels of Voya IM’s hiring of Tom Emmons and Edward Levin, co-heads of Voya IM’s direct infrastructure team responsible for the origination, underwriting, structuring and management of mezzanine and stretch senior opportunities in renewable energy infrastructure projects.

“Since our arrival at Voya IM, we have found significant demand from sponsors for late-stage development financing, construction bridge loans and holding company debt,” said Emmons. “While demand for renewable energy infrastructure projects is growing, traditional sources of financing are more limited compared to the broader infrastructure category. We are thrilled to bring our expertise in renewable energy project financing to deliver our clients access to this growing asset class,” added Levin.

Voya IM has made three renewable energy infrastructure investments to date, including an agreement to provide $30 million in debt financing to Bakersfield Renewable Fuels to help retrofit a crude oil refinery to produce renewable diesel from soybean oil and other plant-based feedstock. Voya IM expects to make between 12 and 18 investments in the renewable energy project financing space, the vast majority of which are expected to be in the U.S. The firm expects that roughly half of these renewable investments will be focused on wind and solar projects, with the other half funding sustainable infrastructure projects such as battery storage and renewable fuels.

The addition of the renewable energy project financing team complements Voya IM's three decades of diversified infrastructure lending and represents a component in growing the firm’s broader $70+ billion (as of 3/31/21) private and alternative investments franchise.

“This is another compelling example of institutional investors’ continued confidence in Voya IM’s value proposition in the private and alternatives space,” said Charlie Shaffer, head of distribution. “Our platforms continue to distinguish themselves as having the breadth to access the full spectrum of deals while maintaining the discipline to remain selective. In today’s private markets where firms are raising bigger and bigger funds, our ability to be selective and participate only in deals that meet our standards is a feature of our platform that has really resonated with institutional investors.”

In addition to renewable energy project financing, Voya IM’s private and alternatives franchise includes over $70 billion across private placements, commercial mortgage loans, private equity, mortgage derivatives and leveraged credit. Over the last two years, Voya IM has also raised $1 billion of commingled assets in commercial mortgage loans, and over $450 million in commingled investments in investment grade private placements. Additionally, Voya IM manages secondary private equity via its affiliate Pomona Capital with $13.4 billion in capital commitments over its 25+ year history (all figures as of 3/31/21).

Earlier this year, the firm also announced the integration of Voya’s long-standing expertise across the areas of non-investment grade corporate credit, bringing together the teams responsible for U.S. and European broadly syndicated senior loans; U.S. and European public high-yield bonds; middle market loans/special situations; and CLO mezzanine and equity investments.

“Going forward, we believe the formation of our expanded leveraged credit group will allow us to increase our presence and overall activity in middle market lending and provide clients with differentiated product solutions in a space that has come to represent an increasingly important component of clients’ strategic allocations,” said Matt Toms, CFA, chief investment officer, fixed income.

About Voya Investment Management

A leading, active asset management firm, Voya Investment Management manages, as of March 31, 2021, more than $248 billion for affiliated and external institutions as well as individual investors. With over 40 years of history in asset management, Voya Investment Management has the experience and resources to provide clients with investment solutions with an emphasis on equities, fixed income, and multi-asset strategies and solutions. Voya Investment Management was named in 2015, 2016, 2017, 2018, 2019 and 2020 as a “Best Places to Work” by Pensions and Investments magazine. For more information, visit voyainvestments.com. Follow Voya Investment Management on Twitter @VoyaInvestments.

VOYA-IM

View source version on businesswire.com: https://www.businesswire.com/news/home/20210610005515/en/

FAQ

What recent financing milestone did Voya Investment Management achieve?

Voya Investment Management completed the first close of a new infrastructure debt fund with over $300 million in commitments.

What is the focus of Voya's new infrastructure debt fund?

The fund focuses on project financing in the renewable energy sector.

How many investments has Voya IM made in renewable energy so far?

Voya IM has made three renewable energy infrastructure investments to date.

What types of projects will Voya IM be investing in?

Voya IM expects to invest in wind, solar, battery storage, and renewable fuels projects.

What is the total value of Voya IM's private and alternative investments portfolio?

As of March 31, 2021, Voya IM manages over $70 billion in private and alternative investments.