MUFG and DWS Group Embark on Strategic Venture to Enhance Infrastructure Financing Capabilities
MUFG and DWS Group: A New Strategic Initiative
Mitsubishi UFJ Financial Group (MUFG) and DWS Group, renowned for its asset management prowess, have initiated a strategic partnership aimed at amplifying their respective abilities in the realm of project financing and infrastructure asset investments. This collaboration marks a significant step towards enhancing their roles within the infrastructure landscape.
Initially, the venture has set an ambitious goal of targeting a yearly transaction volume of $1 billion in infrastructure and project financing. This is particularly noteworthy considering DWS's existing U.S. Infrastructure Debt Platform, which oversees $4.7 billion in committed capital across various funds and collateralized loan obligations (CLOs). Since its inception in 2014, this platform has made over 275 investments across diverse infrastructure sub-sectors, reflecting its status as a frontrunner in infrastructure financing.
This collaboration is not just a mere endorsement of combined capabilities but a landmark moment in DWS's ongoing pursuit of growth within the infrastructure and alternative credit sector. For over a decade, MUFG has maintained its top position in project finance loan origination throughout the Americas, currently managing more than 300 credit facilities targeting infrastructure assets spanning power, energy, digital connectivity, and transportation sectors.
In a statement, Erik Codrington, the Head of Project Finance for MUFG in the Americas, emphasized, "The alliance with DWS highlights MUFG's unwavering commitment to delivering tailored capital and advisory solutions, particularly in the context of energy transition and the burgeoning digital infrastructure sector."
Art de Peña, Head of International Private Side Distribution at MUFG, shared similar sentiments, noting, "Our collaboration with DWS, a global asset manager, empowers us to offer impactful financing and distribution outcomes for our international project finance and infrastructure clients." Supporting this initiative, Anja Sharma, a Managing Director in Capital Markets at MUFG, reaffirmed that this venture underscores MUFG's commitment to cultivating trust and collaboration with clients and investors, essential for effective and transformative financing solutions.
On the DWS side, Jonathan Newman, Head of U.S. Infrastructure Debt, expressed excitement regarding the partnership. He stated, "We are thrilled to strengthen our relationship with MUFG, a recognized leader in infrastructure finance, and are eager to craft financing solutions that cater to institutional market demands. By leveraging the expertise, origination skills, and institutional networks of both teams, we are poised to create value for clients while supporting critical subsectors pivotal for economic development."
Background on MUFG and DWS Group
MUFG stands at the forefront of global financial services with a rich history that spans over 360 years. The group is headquartered in Tokyo and operates a vast network comprising approximately 2,100 locations in over 50 countries. They employ nearly 160,000 individuals and provide a broad spectrum of services, including commercial banking, trust banking, securities, consumer finance, asset management, and leasing. Their overarching aim is to be known as “the world's most trusted financial group,” characterized by close cooperation among its various operating companies to meet customers' diverse financial needs while promoting sustainable growth. MUFG's stocks are traded on the Tokyo, Nagoya, and New York stock exchanges.
Similarly, DWS Group positions itself as a leading asset manager with EUR 963 billion in assets under management as of September 2024. With a global workforce of about 4,700 employees and over 60 years of experience, DWS has carved out a reputation for excellence across Europe, the Americas, and Asia. The firm is recognized for delivering innovative and integrated investment solutions across a wide array of disciplines, including active, passive, and alternative investments.
In summary, the partnership between MUFG and DWS Group is poised to revolutionize the infrastructure investment landscape, offering customized solutions that align with the evolving demands of clients and contributing positively to economic growth.