Ep237: DoubleLine Capital making moves into infrastructure
Jan 19, 2024
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Andrew Hsu, portfolio manager at DoubleLine Capital, discusses their investment in infrastructure, focusing on types of deals, risk-adjusted returns, and key investment areas. They also talk about check sizes, deal structures, advantages of DoubleLine as a partner, and the importance of building relationships.
DoubleLine Capital is diversifying its investment portfolio by entering the infrastructure space and providing access to infrastructure investments for retail investors.
DoubleLine Capital offers a full life cycle approach to partnering with companies, providing private debt financing in the early stages and continuing to support them as they grow and reach the public stage.
Deep dives
Introduction to Double Line Capital
Double Line Capital is an asset management firm focused on fixed income. With over $100 billion under management, they offer various vehicles for investment, including mutual funds and separately managed accounts. While not traditionally associated with project finance, Double Line's expertise in innovation and their experience in the mortgage market have led them to see the potential in infrastructure as an asset class. They aim to provide access to infrastructure investments for retail investors, both through direct financing of infrastructure assets and through the inclusion of fixed income securities backed by infrastructure assets in their public mutual fund.
Creative Approaches to Infrastructure Investing
Double Line employs different avenues for infrastructure plays, ranging from corporate bonds and structured finance to private placements. They seek opportunities across instrument types and have found success in finding the purest play into infrastructure while also maximizing yield and spread. They invest in diverse infrastructure sectors, including energy transition (such as renewables), data and telecom, and traditional oil and gas. The size of their investments varies, ranging from as small as $10-15 million to over $100 million, depending on the transaction. They are flexible in leading deals and collaborating with other investors.
Why Double Line Capital Stands Apart
What sets Double Line apart is their full life cycle approach to partnering with companies. They provide private debt financing in the early stages of a company's life cycle and continue to support them as they grow and reach the public stage. This consistency and flexibility in capital financing make them an attractive option for companies looking for long-term relationships. Those interested in working with Double Line can reach out to their team for further inquiries and discussions.
Andrew Hsu, portfolio manager at DoubleLine Capital, joins us to discuss DoubleLine’s investment in the infrastructure space, the kind of deals on which it is focused, what differentiates DoubleLine from other means of financing, and more.
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