The firm said the new capability adds to the firm’s expertise in public listed infrastructure, real estate debt, and alternative credit.

The capability will focus on investing in a diversified portfolio of private infrastructure debt, targeting thematic investments in globalisation, decarbonisation, and electrification. By doing so, it aims to generate a higher risk premium relative to its public market sector equivalent, while also benefiting from lower default risk and more favourable debt characteristics than non-financial corporate sectors, the firm added.

“Constraints in traditional bank funding have opened the door for private investors to fill the financing gap. This capability will allow investors to access an opportunity set that offers defensive cash flows, lower default risk, and exposure to critical investment themes like decarbonisation, electrification, and digitalisation,” Todd Everett, global head of private markets at Principal Asset Management, said.

In this role, Patel, who will report directly to Everett, will oversee the growth, operations, and strategy of the newly-created private infrastructure debt investment team. Patel brings industry experience, including leadership in origination, underwriting, and portfolio management services, for both affiliated and third-party separate account capital across a wide range of sectors.