Key Takeaways
- • Northwestern Mutual announced on Jan. 7, 2025 a strategic partnership under which Sixth Street will manage $13 billion of the insurer and wealth manager's assets.
- • Northwestern Mutual will acquire a minority equity stake in Sixth Street as part of the partnership, per a Jan. 7 company statement.
- • The mandate spans Sixth Street's asset-backed finance, opportunistic real estate, and infrastructure debt and equity strategies, with the agreement described as having potential to scale.
- • The deal is the latest in a series of alliances between asset managers and insurers, as private credit managers seek insurance balance sheet capital.
- • MetLife Investment Management's pending acquisition of PineBridge Investments for at least $800 million, announced in December, would lift its AUM to $709 billion from $609 billion.
Summary
Insurer and wealth manager Northwestern Mutual on Jan. 7, 2025 announced a strategic partnership with Sixth Street, in which Sixth Street will manage $13 billion of its assets, according to PitchBook. The company said in a statement the same day that Northwestern Mutual will also acquire a minority equity stake in Sixth Street.
The assets will be deployed across Sixth Street's private capital strategies, including asset-backed finance, opportunistic real estate investments, and infrastructure debt and equity. The partnership agreement has the potential to scale. Northwestern Mutual CIO Jeb Bentley said the partnership "significantly expands Northwestern Mutual's investment capabilities by providing increased access to attractive private investments," and that the investments complement the insurer's internal team and support its long-standing commitment to policyowners.
The announcement is the latest in a parade of asset managers and insurance companies forming alliances. Private credit managers have long courted insurers as potential sources of capital for the alternative asset class, as they seek to expand their share of the investment-grade credit market.
As an example of the trend, MetLife Investment Management, the asset management arm of insurer MetLife (NYSE: MET), agreed in December to acquire PineBridge Investments for at least $800 million, expanding its public and private credit offerings. The transaction is expected to close in 2025 and would raise MetLife Investment Management's assets under management to $709 billion from $609 billion.
The assets will be deployed across Sixth Street's private capital strategies, including asset-backed finance, opportunistic real estate investments, and infrastructure debt and equity. The partnership agreement has the potential to scale. Northwestern Mutual CIO Jeb Bentley said the partnership "significantly expands Northwestern Mutual's investment capabilities by providing increased access to attractive private investments," and that the investments complement the insurer's internal team and support its long-standing commitment to policyowners.
The announcement is the latest in a parade of asset managers and insurance companies forming alliances. Private credit managers have long courted insurers as potential sources of capital for the alternative asset class, as they seek to expand their share of the investment-grade credit market.
As an example of the trend, MetLife Investment Management, the asset management arm of insurer MetLife (NYSE: MET), agreed in December to acquire PineBridge Investments for at least $800 million, expanding its public and private credit offerings. The transaction is expected to close in 2025 and would raise MetLife Investment Management's assets under management to $709 billion from $609 billion.
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