The firm is consolidating groups that invest in corporate credit and asset-based finance as well as a business that manages money for insurers under one chain of command. It promoted insurance chief Gilles Dellaert, 44, to lead the combined unit overseeing almost $300 billion of assets — and set a goal to grow total credit assets to $1 trillion within a decade.
The firm’s leaders predict that credit, which now accounts for about a third of assets under management, will grow faster than other business lines. Blackstone has originated more investment-grade loans for insurance clients. It expanded its reach in the business of loans backed by things such as solar panels and airplanes. It’s also the biggest overseer of collateralized loan obligations, managing and packaging bundles of loans.
Blackstone and other private equity firms benefitted from insurers’ hunger for higher yields and more complex wagers. It made a $2.2 billion investment in American International Group Inc.’s life and retirement business, Corebridge Financial, in 2021 in exchange for managing more than $90 billion over time.
The asset manager has no plans to own more than 10% of any insurer. That may avert greater regulatory oversight, and it could make it easier for New York-based Blackstone to work with a broader range of insurers because it isn’t seen as a competitor.Still, its growing presence in insurance and lending will draw fresh scrutiny to Blackstone’s rise.
Source: Loan Digest (loandigest.net)
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