Munich Re’s MEAG Plans Infrastructure Debt Boost to €20 Billion

pp]}xnq5r4f405jp[]js9sc8_media_dl_1.png MEAGArticle content(Bloomberg) — Munich Re’s asset manager MEAG plans to double investments in infrastructure debt, as it increasingly targets new markets such as Canada and explores smaller financing opportunities.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentSince entering the business in 2014, MEAG has built a portfolio of about €10 billion ($11.6 billion) for Munich Re and third-party clients, financing projects such as wind farms, roads and railway cars.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle content“I can imagine that we will double the portfolio in the next five or six years, although that obviously depends on many factors,” said Thomas Bayerl, management board member and global head of illiquid assets at MEAG.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentMEAG is one of Germany’s largest asset managers, alongside Allianz Global Investors, DWS Group, Union Investment and DekaBank. It managed about €368 billion at the end of December, with 15% allocated in alternative investments such as infrastructure debt.Article contentMEAG’s financing deals typically range from €100 million to €400 million, though the firm is now looking into smaller transactions. “We could increasingly pool smaller financing deals and combine them into larger packages,” said Bayerl. As an example, he cited smaller wind and solar parks with a volume of €2 million or €3 million each.Article contentAccording to Bayerl, smaller infrastructure projects are “more attractive in terms of margins” than larger ones. This is also due to the lower competition on the financing side, he said.Article contentMEAG aims to achieve returns on infrastructure financing that are approximately 100 to 200 basis points higher than the returns on liquid investments. Around 98% of the firm’s transactions are self-originated.Article contentArticle contentMost of MEAG’s clients come from German-speaking countries. “Going forward, we are also exploring new markets,” said Bayerl. “We recently won a mandate from a Canadian client. That’s a completely new market for us.”Article contentCanadian investors approached MEAG because they were specifically looking for asset managers with a strong footprint in Europe, Bayerl said. Geopolitics might be one of the reasons. “They want to invest less in the US because it’s unclear what the future relationship between the US and Canada will look like,” Bayerl said. Article contentAccording to Bayerl, major growth areas in infrastructure debt include the expansion of fiber optic networks, the rail and train sector – modern trains for growing populations – and AI driven data centers.Article contentBayerl said MEAG currently is not doing direct corporate lending. “I have always been a fan of real assets,” he said.Article contentTrending 82 Canadians crack Forbes’ 2026 list of the world’s billionaires. Here's the top 10 High Net Worth Should couple in their 50s who want to retire tap into RRSPs or apply for CPP?

Family Finance What's next for Roots, the iconic Canadian brand that said it might put itself up for sale? Retail & Marketing Posthaste: Canada is losing the productivity battle, even in the grocery aisles News Here's why bets are rising for interest rate hikes including for Canada Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. 82 Canadians crack Forbes’ 2026 list of the world’s billionaires. Here's the top 10 High Net Worth Should couple in their 50s who want to retire tap into RRSPs or apply for CPP?

Family Finance What's next for Roots, the iconic Canadian brand that said it might put itself up for sale? Retail & Marketing Posthaste: Canada is losing the productivity battle, even in the grocery aisles News Here's why bets are rising for interest rate hikes including for Canada Economy