Aberdeen Investments said it has been appointed by Utmost Life and Pensions to manage a commercial real estate lending (CREL) mandate supporting the insurer’s growing Bulk Purchase Annuity (BPA) business.
“The appointment expands a relationship spanning more than 25 years and reinforces Aberdeen’s position as a provider of private market investment solutions for insurers seeking long-term, income-generating assets that align with their liabilities,” said Aberdeen.
“Aberdeen has already completed the first transaction under the mandate, providing financing secured against a prime Grade A office asset in central London. The transaction demonstrates the ability of both organisations to move rapidly from mandate award to capital deployment.
“The CREL mandate will focus on sourcing and managing high-quality commercial real estate debt investments for Utmost Life and Pensions, helping support the continued growth of its BPA business and broader pension risk transfer ambitions.
“The appointment comes at a time when insurers are increasingly seeking specialist partners with proven origination, underwriting and asset management capabilities in private markets.
“Aberdeen has a long-established track record in commercial real estate lending and currently manages real estate debt investments on behalf of a range of institutional and insurance clients across the UK and Europe.”
Martin Barnewell, Head of Commercial Real Estate Lending at Aberdeen Investments, said: “We are delighted to have been selected by Utmost Life and Pensions and are proud to have completed our first transaction together so quickly following the award of the mandate.
“This early investment highlights the strength of our origination and execution capabilities, as well as our ability to identify attractive opportunities while maintaining our disciplined investment approach.
“We value the confidence Utmost Life and Pensions has placed in our team and look forward to building a long-term partnership through the delivery of high-quality real estate debt investments that support the growth of its BPA business.”
Craig Baker, Chief Investment Officer at Utmost Life and Pensions, said: “As we continue to grow our BPA business, securing access to high-quality private market assets is an important component of our investment strategy. Aberdeen’s long track record in commercial real estate lending, combined with its insurance asset management expertise, made it a strong partner for this mandate. We are pleased to have completed the first transaction and look forward to working closely together as the portfolio grows.”
Matthew Smith, Global Head, Strategic Insurance Group at Aberdeen Investments, said: “Since entering the UK BPA market, Utmost Life and Pensions have brought welcome competition and a differentiated approach. We are pleased to support their continued growth through the deployment of our significant expertise in managing highly bespoke private credit asset mandates under the Solvency UK matching adjustment regime.”