Private credit leads insurer growth plans despite tighter spreads
Only 30% of insurers say they have most of the private-markets capabilities they need.
Insurer private credit covers directly originated loans, private placements and other illiquid credit assets held against long-term insurance liabilities. A spread above public bonds is only one part of the decision. Underwriting standards, security, covenants, drawdown timing, liquidity and the capital treatment of a loan all affect the return available to an insurer.
This section reports on transactions, mandates, managers and portfolio developments in the market. It also follows the questions that accompany the growth of private credit in insurer portfolios: the evidence behind an internal credit assessment, the terms of an asset-backed facility, concentration, and whether the asset can support matching-adjustment business. Related coverage on ALM, investment strategy and matching adjustment provides the balance-sheet context. The archive includes both individual transactions and the policy or allocation decisions that change the assets insurers can hold over a longer period. It also records developments in the lending structures and manager relationships used by insurers.
Only 30% of insurers say they have most of the private-markets capabilities they need.
Participants have modelled about £370bn of private credit and £400bn of private equity capital.
James Garlick, former co-founder of Wingspire, joins as president of the new platform.
Real estate debt and infrastructure debt ranked highest for capital resilience.
Barings puts manager discipline at the centre of direct-lending outcomes.
Schroders says public-market exposure to private credit is both low and higher quality.
Reporting will now cover collateral type, credit enhancement, affiliation and valuation method.
The platform is expected to enable more than 50,000 for-sale homes a year.
The FSB puts the private credit market at between $1.5tn and $2tn.
The facility funds the acquisition of 11 projects from SEEIT, taking secured capacity to 414 MW.