Asset-backed finance

Life insurers have shifted from simple asset-liability matching to linking with private equity and illiquid credit investments.

Miami confab sees insurance demand, excess cash, containing spread widening.

The Private Debt Investor Global Awards return.

With the retailisation of alternatives set to transform the industry, building brand awareness with individual investors has become a priority for managers.

Opening up alternative assets to non-institutional investors, from HNWIs to 401(k) account holders, represents up to $80trn. It’s an alluring pot of capital for an industry with flatlining annual fundraising figures in some asset classes. And yet, multiple headwinds exist, making the journey towards increasing democratisation far from straightforward.

The Ohio-based concern’s term loans were primarily underwritten and syndicated by investment banks.

Newton, the newly formed venture, will source deals across the US and be administered by both companies.

Staff of the $60bn Arizona State Retirement System, a long-time private credit investor, are still mostly optimistic about the asset class amid a push to diversify the programme.

‘Private Credit+’ is a $45trn opportunity globally. Direct lending, $1.5trn of that amount, is saturated, the report says.

Amid the struggles in private markets fundraising, private debt has fared relatively well. But investors have concerns, and that means their manager due diligence is getting more demanding.