Liberty Mutual, OIC Launch Infrastructure Credit Strategy
Orion Infrastructure Capital and Liberty Mutual Investments, the investment arm of Liberty Mutual Group, have expanded their long-term partnership and launched a credit income strategy focused on middle-market infrastructure debt originated across OIC’s platform.
Under a long-term investment management agreement, LMI has the option to deploy up to $750 million. The firms have jointly committed $240 million to date.
The strategy will operate within OIC’s existing infrastructure credit business, with a distinct mandate designed to complement the firm’s other strategies. Initial investments include SkyGround Utility, which provides overhead and underground electrical distribution and transmission infrastructure, and The LifeLine Group, which produces corn-based food ingredients, renewable fuel, animal feed and related products.
“We see a compelling opportunity to generate attractive current income while supporting essential businesses with resilient cash flows,” said Ethan Shoemaker, investment partner and head of infrastructure credit at OIC.
Founded in 2015, OIC invests in middle-market energy, transportation and logistics, power, digital, and waste and recycling infrastructure. The firm manages about $6.5 billion in assets and recently closed its Credit Opportunities Fund IV at $1.58 billion, 43% above its $1.1 billion target. That fund drew about 90% of institutional investors back from its predecessor.
“Middle market infrastructure has strong sector tailwinds,” said John Kim, head of alternative credit at LMI, adding that the strategy brings the firm’s credit capabilities to a growing set of opportunities across essential energy and infrastructure businesses.
LMI invests more than $130 billion globally across public and private markets on behalf of Liberty Mutual Group. The insurer has also been expanding in other areas of private credit, including an agreement to fund $5 billion of Affirm’s buy now, pay later loans.
Latham & Watkins advised OIC on the deal.