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Citizens Bank, Allianz Global Investors, StepStone Group Form AC Loan Sourcing

March 30, 2018, 07:45 AM
Filed Under: New Venture

Allianz Global Investors, one of the world’s leading active investment managers, StepStone Group LP, a global private markets solutions provider, and Citizens Bank, an originator of middle-market loans, have collaborated in the launching of AC Loan Sourcing, Ltd (AC Loan Sourcing), a lender to U.S. middle-market companies. AC Loan Sourcing seeks to maximize the interest income it distributes to its investors by minimizing the historically high overhead costs associated with investing in middle-market loans.

AC Loan Sourcing was formed to increase accessibility of middle market, first lien, senior secured loans to a broad range of investors. To accomplish this, AllianzGI is working with Citizens Bank, the 12th largest commercial bank in the United States. Under this arrangement, the US Private Credit Solutions investment team at AllianzGI manages AC Loan Sourcing and works with Citizens to source and underwrite assets for the portfolio – primarily loans to sponsor-owned corporations.

AllianzGI’s investment in AC Loan Sourcing was led by John Corbett, Portfolio Manager, and Jamie Walker, Portfolio Manager, US Private Credit Solutions at AllianzGI. John Corbett said: “AC Loan Sourcing provides a unique, cost efficient solution to invest in first lien middle-market loans – a historically compelling asset class. We are pleased to have the opportunity to work with StepStone and Citizens Bank on this investment.”

Jan Kuhlmann, Managing Director, led StepStone’s deal team. Urs von Büren, a StepStone Partner who leads their private debt activities, said: “We are pleased to work together with AllianzGI’s US Private Credit Solutions team on this bespoke investment. It provides our investors a distinctive opportunity to gain instant exposure to a segment of the market that we believe is capable of generating attractive risk-adjusted returns.”

Philip Robbins, Managing Director of Citizens Bank, commented: "This arrangement combines Citizens’ unique direct origination capabilities with a global asset management platform. The transaction was designed to increase fee revenue, maintain client relationships and improve balance sheet flexibility. Citizens looks forward to this strategic relationship.”

The New York-based AllianzGI US Private Credit Solutions investment team provides private credit to US middle-market businesses through its Credit Solutions funds and syndicated loan funds. The team’s middle-market direct origination and structuring expertise and deep bench of industry-focused research analysts provide an edge in sourcing, selecting and monitoring the AC Loan Sourcing portfolio.


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