Aon raises $350m to target COVID-19-led dislocations in credit markets

Re/insurance broker Aon has raised $349.9 million from US institutional investors for its "opportunistic credit investment strategy", targeting public corporate and structured credit, stressed credit and real estate debt.

With the new investment strategy, Aon seeks to take advantage of "dislocations" in the credit markets as a result of the global COVID-19 pandemic.

Aon has identified three credit strategies, including liquidity-driven dislocations, stressed and distressed credit that focus on businesses and securities impacted by the financial and economic crisis, and real estate credit that invests in targeted sectors that offer attractive valuations.

"The global COVID-19 pandemic led to significant dislocations in markets," said Russ Ivinjack, senior partner for Aon Investments. "The economic downturn has increased the number of companies in need of additional financing to weather the storm. We look at the opportunity to focus on those assets that remain disconnected from their fundamentals or continue to trade at distressed levels, particularly in credit."

Steve Voss, senior partner and head of Aon Investments for North America, added: "We appreciate the support of our investors and welcome many new investors in this endeavor. The Opportunistic Credit strategy will draw on Aon's broad research capabilities to take advantage of global dislocations in the credit markets to generate returns that are compelling on both an absolute and risk-adjusted basis. We are confident in the global platform and team we have built to find these opportunities to drive value for our investors in a quickly evolving marketplace."