World funding supervisor Sixth Road will handle $13bn (£10.5bn) of belongings for Northwestern Mutual as a part of a newly-inked long-term strategic partnership.
Underneath the phrases of the deal, Northwestern Mutual has additionally acquired a minority fairness curiosity in Sixth Road.
The strategic partnership will help Northwestern Mutual’s long-term diversified funding technique for its $320bn institutional funding portfolios.
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Sixth Road will handle not less than $13bn of those belongings initially, with the potential to scale over time. The investments will span Sixth Road’s multi-strategy non-public capital method, which incorporates asset-based finance and opportunistic investments in actual property and infrastructure debt and fairness.
“This new partnership with Sixth Road considerably expands Northwestern Mutual’s funding capabilities by offering elevated entry to engaging non-public investments – all of which counterpoint our inside group and can contribute to Northwestern Mutual’s longstanding historical past of delivering worth to policyowners,” stated Jeb Bentley, chief funding officer at Northwestern Mutual.
“Sixth Road has industry-leading asset origination and funding administration capabilities, a confirmed monitor document, and a compelling tradition, and we sit up for constructing a mutually helpful, extremely profitable long-term partnership.”
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“We’re thrilled to embark on this partnership with Northwestern Mutual,” stated Josh Easterly, co-president and co-chief funding officer, Sixth Road.
“As one of the revered leaders within the insurance coverage and wealth administration area, Northwestern Mutual’s monetary energy is unmatched, and we sit up for additional fortifying their funding platform.”
Final 12 months, Northwestern Mutual introduced that it expects to ship a document $8.2bn in dividends to its policyowners in 2025. The corporate additionally reported document revenues and a surplus of greater than $36bn and $38bn, respectively.
Morgan Stanley & Co served as unique monetary advisor and Debevoise & Plimpton served as authorized advisor to Northwestern Mutual.
Evercore served as monetary advisor and Simpson Thacher & Bartlett and Cleary Gottlieb Steen & Hamilton served as authorized advisors to Sixth Road.
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