Principal launches new fund

Principal Asset Management has announced the launch of its new private debt capability and the appointment of Mansi Patel as senior managing director, head of infrastructure debt.

Patel will lead the launch and implementation of the new fund, which will focus on investing in a diversified portfolio of private infrastructure debt, targeting thematic investments in globalisation, decarbonisation and electrification.

Principal said it aims to generate a higher risk premium relative to its public market sector equivalent, while also benefiting from consistently lower default risk and more favorable debt characteristics to non-financial corporate sectors.

"The launch of our private infrastructure debt capability comes at an opportune time for investors, given the powerful market forces driving tremendous capital needs across all infrastructure sectors," Principal global head of private markets Todd Everett said.

"Constraints in traditional bank funding have opened the door for private investors to fill the financing gap. This capability will allow investors to access an opportunity set that offers defensive cash flows, lower default risk, and exposure to critical investment themes like decarbonisation, electrification, and digitalisation."

In his new role, Patel will oversee the growth, operations, and strategy of the newly created private infrastructure debt investment team.

Patel brings extensive industry experience, including leadership in origination, underwriting, and portfolio management services, for both affiliated and third-party separate account capital across multiple sectors. Patel will report directly to Everett.

"Private infrastructure debt can play a key role in portfolio construction for institutions and retail investors alike, aiming to offer safety, stability, and enhanced returns," Patel said.

"This makes it an exciting time to join Principal Asset Management, a leader in innovative and diversified investment solutions, and lead the new private infrastructure debt capability, which will be a compelling addition to the firm's already strong private market lineup."