Welcome!

News Feed Item

Mariner Investment Group Closes $450 Million In New Infrastructure Investment Strategy

Innovative Investment Solutions To Provide Regulatory Capital Relief To Global Project Finance Banks in Light Of More Stringent Financial Regulations

NEW YORK, Jan. 21, 2014 /PRNewswire/ -- Mariner Investment Group, the global alternative asset manager, today announced that it has closed on two new client mandates, launching Mariner Infrastructure Investment Management ("MIIM"), Mariner's bank deleveraging and regulatory capital management investment business.  MIIM serves as portfolio manager for two investment vehicles:  the International Infrastructure Finance Company Fund, LP, a $350 million comingled fund ("IIFC"), and Mariner Breakwater, LP, a $100 million fund-of-one.  MIIM aims to take leveraged exposure to loans, bonds, and other debt instruments associated with global infrastructure, energy, and transportation assets.  Target investments are designed to enable banks to manage their balance sheet in light of new financial regulations, providing them with risk-transfer tools that optimize and enhance their regulatory capital and funding requirements.   

Mariner established MIIM in an effort to capitalize on the opportunity set created by two significant investment themes: (1) tightened Basel III standards which have caused a dramatic shortfall in regulatory capital at banks, likely to persist over the next several years, and (2) an urgent need for additional infrastructure finance in markets around the globe.

The MIIM team's primary investment strategy will provide credit protection against certain losses in specific infrastructure loan portfolios. Mariner selects assets for these investments based on strict credit underwriting criteria, coordinated by a highly experienced in-house team with significant infrastructure investment expertise. By working with Mariner on the provision of credit enhancement on a loan portfolio, a bank may typically reduce its Basel III risk exposure, freeing up its balance sheet to be redeployed by the bank to help grow businesses or to off-set other capital needs.  In exchange for providing the loss protection, the participating vehicle and its investors would typically expect to receive a portion of the loan spread for the life of the credit protection.   

"Our new infrastructure investment mandates provide global project finance banks with innovative, customized, and attractive solutions for the management of risk weighted assets in their infrastructure, power, and transport loan books, thereby addressing a critical and unmet need within the financial sector," said Bracebridge Young, Mariner's Chief Executive Officer. "We're hopeful that the uptake will be strong; on the back of IIFC's initial close, we have already completed our first investment with a major European project finance bank."  

Commitments to our initial products and investor mandates reflect strong investor interest.  Investors include a diverse group of institutional investors, including public and private pension funds, a large charitable trust, and affiliates of Mariner for their own accounts.  Over a half dozen institutional investors participated in the initial capitalization of the vehicles, the majority of which are first time investors with Mariner. 

Mr. Young continued: "Mariner will continue to provide our investors with an attractive, timely, and value-added investment opportunity, reflecting our unique combination of asset class expertise and structured credit know-how. In addition, like all of our investments, this line of business is supported by Mariner's rigorous, best-in-class risk management and strong credit culture."   

MIIM's management team is led by Andrew Hohns, who oversees a group of six dedicated investment professionals with more than 90 years of combined experience in infrastructure finance.

Dr. Hohns commented: "The magnitude of the capital requirements for banks substantially exceeds available capacity in equity markets. Banks are currently developing alternative strategies to meet these stringent new demands, and this business initiative is designed to be a flexible partner to banks to assist them in meeting the new requirements. From an investor standpoint, we have initially focused on providing these solutions with infrastructure as the target asset class because of its relative stability: we build our fundamental underwriting views on a number of factors with a particular focus on good historical credit experience, consistently low default rates, and high recoveries across a range of market cycles, regions, and industry sectors."

Mariner Furthers its Commitment to Socially Responsible Investment

The launch of this business serves as a further demonstration of Mariner's on-going commitment to impact investing, both indirectly and directly. The strategy's investments are designed to enable banks to expand their lending to the infrastructure sector by freeing up regulatory capital for balance sheet growth, while at the same time, Mariner has committed to donate five percent of the management fee it receives from this investment strategy to the UNICEF Bridge Fund, a financial tool that enables UNICEF to fast-track lifesaving assistance for children in emergency situations.

Mr. Young commented, "An important and intended by-product of this business venture is to facilitate substantial new infrastructure finance and development. We believe that this urgent need can be addressed in part by freeing up additional bank capital to fund vital projects around the globe, but this alone is unlikely to meet infrastructure needs in less developed places. To that end, we decided to allocate a portion of our management fee from the strategy to the UNICEF Bridge Fund in recognition of the needs of children in these areas."

"We applaud Mariner for its dedication to socially responsible investing and for its support of UNICEF's efforts to save and protect children living in the most dire of circumstances," said Edward G. Lloyd, Chief Operating Officer and Chief Financial Officer of the U.S. Fund for UNICEF, which created and manages the UNICEF Bridge Fund. "Mariner's commitment to allocate a percentage of its management fee to the UNICEF Bridge Fund represents an innovative model for financial institutions and investment funds—one that will pay dividends for vulnerable children all over the world by helping ensure medicine, vaccines, therapeutic food, and other vital supplies reach those in need as quickly as possible."

Today's announcement is the latest demonstration of Mariner's commitment to supporting socially responsible investment.  This past fall, Mariner became a signatory to the United Nations-supported Principles for Responsible Investment (PRI) and announced that it would begin to incorporate environmental, social, and governance (ESG) research, ratings, and screening tools into one of the firm's more significant client mandates.

About Mariner Investment Group, LLC

Mariner Investment Group, LLC, is an SEC registered investment adviser and manages approximately $10 billion of assets together with its associated advisers consisting of several direct and affiliated single and multi-strategy hedge funds, funds of funds and other alternative investments services.  Founded in 1992, Mariner and its associated advisers employ approximately 230 people in New York, Boston, London, Tokyo, Seoul, Philadelphia, Harrison (NY) and Rowayton (CT).

For Media Inquiries:
David Press
Tel: (917) 721-7046
[email protected]

SOURCE Mariner Investment Group

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
@DevOpsSummit has been named the ‘Top DevOps Influencer' by iTrend. iTred processes millions of conversations, tweets, interactions, news articles, press releases, blog posts - and extract meaning form them and analyzes mobile and desktop software platforms used to communicate, various metadata (such as geo location), and automation tools. In overall placement, @DevOpsSummit ranked as the number one ‘DevOps Influencer' followed by @CloudExpo at third, and @MicroservicesE at 24th.
Did you know that you can develop for mainframes in Java? Or that the testing and deployment can be automated across mobile to mainframe? In his session at @DevOpsSummit at 20th Cloud Expo, Vaughn Marshall, Sr. Principal Product Owner at CA Technologies, will discuss and demo how increasingly teams are developing with agile methodologies using modern development environments and automating testing and deployments, mobile to mainframe.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Developers want to create better apps faster. Static clouds are giving way to scalable systems, with dynamic resource allocation and application monitoring. You won't hear that chant from users on any picket line, but helping developers to create better apps faster is the mission of Lee Atchison, principal cloud architect and advocate at New Relic Inc., based in San Francisco. His singular job is to understand and drive the industry in the areas of cloud architecture, microservices, scalability ...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...