Invictus Capital Partners launches insurance solutions business
US-based alternative credit asset manager Invictus Capital Partners has launched an insurance solutions business.
The new division is being headed up by senior managing director Carl D. Bell, who serves on the firm’s management and investment committees.
“Invictus is excited to launch this new business, which will provide insurance clients with access to high-quality residential loans and the expertise and infrastructure needed to navigate the granular nature of this asset class,” said Michael W. Warden, chief executive of Invictus Capital Partners. “We strategically built Verus Mortgage Capital, our affiliated operating platform, to provide our clients with the benefit of an advantaged position in sourcing and managing residential loans at an institutional scale.”
Washington DC-headquartered Invictus manages more than $18bn (£14.1bn) of assets and specialises in residential credit investing.
Read more: Regulators increase scrutiny of insurers’ private credit investments
It said that the launch of its insurance solutions business comes in response to increasing activity and inquiries from its insurance company partners.
“We believe that the insurance industry is increasingly looking for diversification and new investment avenues,” said Bell. “In particular, residential loans are the fastest-growing investment category for insurers since 2020, which shouldn’t be surprising given residential loans offer attractive yields, favourable risk-based capital treatment, and the potential for FHLB financing.”
Invictus highlighted opportunities within the residential private credit sector, noting that regulatory changes have led banks to rein in their mortgage lending, leaving a funding gap that can be filled by private capital.
Private credit fund managers have increasingly been partnering with insurers, who have substantial amounts of money on their balance sheet that they need to invest.
Last month, Golub Capital 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.
And Brookfield Asset Management in April revealed that it plans to expand its insurer client base via its credit arm.