US-based different credit score asset supervisor Invictus Capital Companions has launched an insurance coverage options enterprise.
The brand new division is being headed up by senior managing director Carl D. Bell, who serves on the agency’s administration and funding committees.
“Invictus is happy to launch this new enterprise, which can present insurance coverage shoppers with entry to high-quality residential loans and the experience and infrastructure wanted to navigate the granular nature of this asset class,” mentioned Michael W. Warden, chief govt of Invictus Capital Companions. “We strategically constructed Verus Mortgage Capital, our affiliated working platform, to supply our shoppers with the good thing about an advantaged place in sourcing and managing residential loans at an institutional scale.”
Washington DC-headquartered Invictus manages greater than $18bn (£14.1bn) of belongings and specialises in residential credit score investing.
Learn extra: Regulators improve scrutiny of insurers’ personal credit score investments
It mentioned that the launch of its insurance coverage options enterprise is available in response to growing exercise and inquiries from its insurance coverage firm companions.
“We imagine that the insurance coverage trade is more and more searching for diversification and new funding avenues,” mentioned Bell. “Particularly, residential loans are the fastest-growing funding class for insurers since 2020, which shouldn’t be shocking given residential loans supply engaging yields, beneficial risk-based capital therapy, and the potential for FHLB financing.”
Invictus highlighted alternatives inside the residential personal credit score sector, noting that regulatory modifications have led banks to rein of their mortgage lending, leaving a funding hole that may be crammed by personal capital.
Personal credit score fund managers have more and more been partnering with insurers, who’ve substantial quantities of cash on their steadiness sheet that they should make investments.
Final month, Golub Capital entered right into a strategic partnership with Nassau Monetary Group, which can present Nassau’s insurance coverage subsidiaries with entry to Golub Capital’s center market direct lending methods.
And Brookfield Asset Administration in April revealed that it plans to broaden its insurer consumer base by way of its credit score arm.
