Expanding Collaboration Announced Between Railpen and Neuberger Berman
Railpen Extends Partnership with Neuberger Berman for Securitised Credit Solutions
UK pension fund manager Railpen has expanded its existing partnership with investment manager Neuberger Berman by awarding a new securitised credit mandate. This move increases Railpen’s exposure to liquid securitised credit, strengthening the collaboration built on strong technical expertise and tailored institutional investment needs.
The new mandate, structured as a Qualifying Investor Alternative Investment Fund (QIAIF) within the Neuberger Berman Investment Funds II umbrella, is co-managed by senior portfolio managers specializing in multisector fixed income, structured credit, and securitised products. The mandate primarily invests in securitised debt securities such as collateralised loan obligations (CLOs), asset-backed securities (ABS), commercial mortgage-backed securities (CMBS), and mortgage-backed securities (MBS).
Craig Heron, director of public markets at Railpen, expressed satisfaction with the partnership, stating, "We are pleased to extend our partnership with Neuberger Berman. Their deep expertise in credit is a key factor in delivering long-term value for our members." Ed Jones, head of UK institutional client business at Neuberger, commented on the extension, "We are delighted to continue our partnership with Railpen and are committed to delivering innovative investment solutions that meet their needs."
The mandate does not specify the timeframe or duration of the investment. Additionally, it does not disclose the expected return or risk associated with the investment. It also does not mention any geographical restrictions or focus areas for the investments.
The expansion of Railpen's existing £2 billion multi-asset credit strategy with Neuberger Berman, launched in July 2024, raises the total partnership credit allocation with Neuberger Berman to above £3 billion. Kunaal Vora and the team at Railpen were involved in delivering the new securitised credit solution.
The new mandate aims for "additional exposure to liquid securitised credit", which is expected to further diversify Railpen's investment portfolio and potentially enhance returns. However, it is important to note that all investments carry risk, and the performance of the new mandate will depend on various factors, including market conditions and the quality of the underlying assets.
[1] Railpen Press Release, "Railpen Expands Partnership with Neuberger Berman for Securitised Credit Solutions", [Link to Press Release] [2] Neuberger Berman Press Release, "Railpen Awards New Securitised Credit Mandate to Neuberger Berman", [Link to Press Release]
- Railpen's investment in the new securitized credit mandate, structured as a Qualifying Investor Alternative Investment Fund (QIAIF) under Neuberger Berman Investment Funds II umbrella, demonstrates their continued interest in finance, specifically investment funds focused on securitized credit.
- The expansion of Railpen's partnership with Neuberger Berman, aimed at securitized credit solutions, underscores the significance of finance in their strategic decision-making, with a focus on long-term value generation for their members.
