Allianz Global Investors has created a joint venture with AlTi Global, a $72 billion wealth manager, to create a private markets offering for ultra-high-net-worth wealth clients.

The JV, structured through a partnership with Allianz X, will initially focus on global private debt, which the firms estimate to be worth over $1.5 trillion. AllianzGI is part of the Allianz Group, one of the world’s leading private debt investors.

The partnership will provide unprecedented access to leading third-party managers, the firms added. The deal offers access to managers with outstanding track records, benefits of scale, low minimum ticket sizes and expanded investment opportunities such as secondaries and co-investments.

The AlTi-Allianz Private Debt Program is set to be offered via a semi-liquid evergreen structure designed to invest in all aspects of the private debt markets, covering various strategies, regions, segments, and risk-return profiles, including direct access to secondaries and co-investments.

“Our AlTi-Allianz Private Debt Program sets a new benchmark in the UHNW wealth management industry,” said Michael Tiedemann, CEO of AlTi Tiedemann Global. “We are delighted to offer our clients unique access to Allianz’s world-class network of third-party managers at attractive terms and with additional access to co-investments and secondaries.”

Tobias Pross, CEO of Allianz Global Investors, said that the diversification benefits of private debt along with returns make it compelling to investors. “For ultra-high-net-worth individuals and select institutional investors, diversification beyond the public financial markets can help to preserve and grow capital.”

Earlier this year, AlTi announced that Allianz X will invest up to $300 million in its business through one of its affiliates, in addition to funding from Constellation Wealth Capital, to assist it expand its foothold in the ultra-high-net-worth wealth area.