The relationship between private credit managers and insurers is evolving, and innovative investment structures – such as rated feeder vehicles, collateralized fund obligations and separately managed accounts – can enable optimal capital efficiency under risk-based capital (RBC) requirements.
In the latest episode of LSEG LPC’s Lending Lowdown podcast, Ryan J. Moreno, Co-Head of DLA Piper’s Leveraged Finance team, and David Ells, Partner and Portfolio Manager at Ares Management, joined LSEG LPC’s CJ Doherty to discuss the fascinating intersection between private credit and insurance company capital.
The speakers discuss key considerations related to investment structures, recent National Association of Insurance Commissioners (NAIC) guidance, the impact of private equity ownership, and how insurers are strategically deploying long-dated, fixed-rate capital to gain exposure to private credit while optimizing portfolio returns.
Key highlights include:
- Why many insurers are turning to private credit funds to pursue higher, more stable yields amid a constrained investing landscape
- Structuring and regulatory considerations for accessing insurance capital at scale
- How asset managers are adapting their strategies to meet insurers’ risk-return profiles, unlock capital, and scale lending platforms
Listen to the episode here.