Strong growth in Mandatum Life’s alternative investments

6.11.2017

Mandatum Life’s client assets invested in alternative investments have exceeded the 1-billion-euro mark. Current major projects include investments in capital investment funds’ management companies, international real estate and debt, and continuous investment programmes that enable the construction of an alternative investment portfolio with tailored diversification.

Since spring 2015, Mandatum Life has been investing heavily in its offering of alternative investments to its customers.

“Growth is based on solid special expertise, the market position of a large investor and our co-investment philosophy,” comments Lauri Vaittinen, Senior Vice President, Investment Solutions, from Mandatum Life.

A project investing in minority holdings in the management companies of capital investment funds has raised more than 100 million euros over the course of the autumn. This investment allows investors to reap the benefits offered by the sector’s solid profitability and investment operations carried out by leading capital funds. “The strong demand for the project results from the front-loaded cash flow paid for the investment, exceptional in the case of capital investments. At the same time, caution is called for in this asset class, with valuation factors at an all-time high,” Vaittinen says.

Launched at the end of September, ML International Real Estate I has raised EUR 50 million in investment assets. In real estate investments, the need for international diversification is high among Nordic institutional investors, as a typical real estate portfolio focuses on neighbouring market areas.

The selection of special investments, such as capital investment funds, international real estate and debt, and alternative fixed income investments, is utilised in building continuous investment programmes. Professional investors demand tailorability and cost-effectiveness. The service concept offered to them combines investment selection, advice, anticipation of liquidity and reporting services.

For more information, please contact:

Lauri Vaittinen, Senior Vice President, Investment Solutions, lauri.vaittinen@mandatumlife.fi, tel. 358 (0) 50 382 1674

Niina Riihelä, Vice President, Marketing and Communications: niina.riihela@mandatumlife.fi, tel. +358 (0) 40 728 1548

Investors in Mandatum Life’s alternative investments mainly include Finnish and Swedish non-consumer investors and professional customers classified separately, such as pension funds and other funds and foundations, major companies and associations with considerable investment assets, and limited liability companies engaging in investment operations.