Key Takeaways
- • The 20 largest global insurers held a collective US$80.43 billion in private credit as of May 1, with individual allocations ranging from 11.3% to 35.5% of assets under management, according to With Intelligence data.
- • Private equity and venture capital investment in waste management reached US$9.34 billion globally year-to-date through May 17, surpassing any full-year total since 2021, per S&P Global Market Intelligence data.
- • Blackstone and EQT's planned US$6.64 billion acquisition of Spanish waste manager Urbaser SA from Platinum Equity accounts for most of the sector surge.
- • CVC Capital Partners sold an 11.08% stake in Naturgy Energy Group for €3.07 billion, pricing shares at €28.55, a 4.6% discount to the May 26 close.
- • Venture capital funding in emerging markets reached US$15.24 billion in Q1, double the year-earlier level, according to a GPCA report.
Summary
Insurers are increasing their exposure to private credit in pursuit of higher yields than public bonds offer, according to S&P Global Market Intelligence. The 20 global insurers with the largest private credit allocations collectively held US$80.43 billion as of May 1, per With Intelligence data, with individual allocations spanning 11.3% to 35.5% of assets under management. Diversification benefits are weighed against illiquidity, since the private credit secondary market is shallow, and against the complexity of certain loans, which makes risk harder to assess.
The risk trade-off was underlined earlier this year when private credit managers, including Blue Owl Capital Inc., reported surging redemption requests from investors concerned about potential losses on loans to software companies. Blackstone Inc. also saw elevated outflows from Blackstone Private Credit Fund (BCRED) in the first quarter. Blackstone President Jonathan Gray said the activity was driven by "a smaller number of large investors" and did not reflect a broad-based retreat.
In waste management, private equity and venture capital investment totaled US$9.34 billion globally through May 17, surpassing any full-year total since 2021, according to S&P Global Market Intelligence. The surge is largely attributable to Blackstone and EQT's planned US$6.64 billion acquisition of Urbaser SA from Platinum Equity, announced in February. Private equity waste management deal volume has declined every year since peaking at 107 transactions in 2022.
Among other deals, CVC sold its Naturgy stake for €3.07 billion, according to The Wall Street Journal citing Goldman Sachs Bank Europe. Fundraising activity included Ampersand Capital Partners' close of its 12th primary fund at US$1.5 billion, and Altor Equity Partners' target of €3.25 billion for its seventh flagship buyout fund, of which roughly €555 million has been raised. Hamilton Lane began raising a general partner-led secondaries fund and is raising a seventh secondary fund targeting more than US$5.6 billion.
Venture capital investment in emerging markets reached US$15.24 billion in the first quarter, double the US$7.62 billion a year earlier, according to a Global Private Capital Association report. China accounted for US$8.98 billion of that, with more than 60% directed to AI, robotics and biotechnology, per GPCA.
The risk trade-off was underlined earlier this year when private credit managers, including Blue Owl Capital Inc., reported surging redemption requests from investors concerned about potential losses on loans to software companies. Blackstone Inc. also saw elevated outflows from Blackstone Private Credit Fund (BCRED) in the first quarter. Blackstone President Jonathan Gray said the activity was driven by "a smaller number of large investors" and did not reflect a broad-based retreat.
In waste management, private equity and venture capital investment totaled US$9.34 billion globally through May 17, surpassing any full-year total since 2021, according to S&P Global Market Intelligence. The surge is largely attributable to Blackstone and EQT's planned US$6.64 billion acquisition of Urbaser SA from Platinum Equity, announced in February. Private equity waste management deal volume has declined every year since peaking at 107 transactions in 2022.
Among other deals, CVC sold its Naturgy stake for €3.07 billion, according to The Wall Street Journal citing Goldman Sachs Bank Europe. Fundraising activity included Ampersand Capital Partners' close of its 12th primary fund at US$1.5 billion, and Altor Equity Partners' target of €3.25 billion for its seventh flagship buyout fund, of which roughly €555 million has been raised. Hamilton Lane began raising a general partner-led secondaries fund and is raising a seventh secondary fund targeting more than US$5.6 billion.
Venture capital investment in emerging markets reached US$15.24 billion in the first quarter, double the US$7.62 billion a year earlier, according to a Global Private Capital Association report. China accounted for US$8.98 billion of that, with more than 60% directed to AI, robotics and biotechnology, per GPCA.
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