Golub partners with Nassau to offer private credit strategy to insurers
Private credit fund manager Golub Capital has entered into a strategic partnership with Nassau Financial Group, which will provide Nassau’s insurance subsidiaries with access to Golub Capital’s middle market direct lending strategies.
As part of the agreement, Golub Capital – which has over $70bn (£54.9bn) of assets under management – will also become a minority stakeholder in Nassau, in return for a $200m equity investment.
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“Nassau has built an outstanding annuities business, and we are excited to be a part of the next chapter of its growth,” said Golub Capital president David Golub.
“This partnership also represents another key milestone in our Insurance Solutions efforts. We are delighted to provide Nassau with both capital-efficient investment solutions in our market-leading direct lending capabilities and strategic capital.”
Nassau is a financial services company with insurance and asset management businesses that has $24bn in assets under management.
“We are excited to expand our investor group as we begin a new strategic partnership with Golub Capital,” said Phil Gass, chairman and chief executive of Nassau. “In addition to their significant capital investment, Golub Capital brings a market-leading track record in direct lending that will expand our balance sheet investment capabilities in support of our continued growth.”
The deal is expected to close in the second half of 2024, subject to regulatory approval.
Read more: Regulators increase scrutiny of insurers’ private credit investments
Insurers have increasingly been partnering with private credit firms as they have sizeable amounts of money on their balance sheet that they need to invest.
Arrow Global’s founder Zach Lewy recently told Alternative Credit Investor that he expects the “notable and recurring convergence between credit managers and insurers” to continue.
Brookfield Asset Management in April revealed that it plans to expand its insurer client base via its credit arm.
And KKR’s first-quarter results showed that new capital raised in its alternative credit portfolio was partly driven by inflows at Global Atlantic, a life insurer it acquired.