AXA IM Alts closed its significant risk transfer fund, Partner Capital Solutions IX, at more than $2.5 billion, exceeding its target, according to a news release.
The fund close included more than 46 investors with $1.3 billion raised for the fund alongside $1.2 billion in parallel separately managed account mandates.
Investors include the $53.5 billion Arizona State Retirement System, Phoenix, and Danish pension funds, according to the news release. The Arizona pension fund hired AXA to manage $400 million in its significant risk transfer strategy through a fund-of-one separate account. The names of the Danish pensions were not disclosed.
AXA IM Alts has closed 110 deals since it launched its significant risk transfer strategy and described the segment as a “growing market” with significant risk transfers becoming a “balance sheet management tool” for a growing number of banks, according to the news release.
As investors increase private credit allocations, many are looking beyond traditional midmarket direct lending strategies, said Deborah Shire, deputy head of AXA IM Alts, in the news release.
“SRT is emerging as a prime investment, offering exposure to a variety of underlying asset classes originating from bank core portfolios, covering large-cap corporates all the way through to granular portfolios of SMEs (small to midsize enterprises), including investments in sublines and consumer deals,” Shire said.
AXA IM Alts is AXA Investment Managers’ alternative business unit and had about $198 billion in asset under management as of March 31.
