InsuranceAUM.com

Episode 256: Best Practices for Portfolio Construction in Private Assets

Join host Stewart Foley on the InsuranceAUM.com Podcast as we dive into the intricacies of private asset portfolio construction with insights from Bryan Jenkins and Eric Solfisburg of Hamilton Lane. This episode explores how a strategic approach to portfolio construction—focusing on factors like asset allocation, investment pacing, and liquidity management—can enhance outcomes for insurance investors. With over three decades in private markets, Hamilton Lane shares its expertise on balancing return and risk while managing the challenges of data and transparency that are unique to this asset class.

 

The conversation also covers the vital considerations around data and analytics, industry exposure, and the often-overlooked factor of asset location for insurers. Jenkins and Solfisburg emphasize the importance of a consistent, disciplined approach to private asset allocation, discussing tools and techniques Hamilton Lane uses to support sophisticated portfolio strategies. For insurers navigating private markets, this episode offers a valuable guide to constructing resilient, well-diversified portfolios that align with insurance-specific risk management needs.

Episode 255: CLO Market Pulse with Ian Gilbertson of Invesco

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, sits down with Ian Gilbertson, CLO Portfolio Manager and Co-Head of U.S. CLOs at Invesco, for a deep dive into the world of Collateralized Loan Obligations (CLOs) and their role in insurance investment portfolios. Ian provides a primer on CLOs, explaining their structure, the types of assets they hold, and why this asset class has shown such resilience and stability.

 

They discuss the growth of CLOs in insurance company portfolios, their historical performance, and why they continue to attract insurers even amid changing regulatory requirements. Ian also shares his insights on current opportunities in the loan market, the evolving credit cycle, and the outlook for CLOs in 2025, especially in a declining rate environment. Ian brings extensive expertise to the conversation, offering both high-level context and practical insights into the risks and rewards of this asset class for insurers.

Episode 254: Demystifying OCIO for Insurance Companies

In this episode of the InsuranceAUM.com podcast, Stewart Foley hosts Olaolu Aganga, U.S. Chief Investment Officer at Mercer, and Stephanie Thomas, Senior Investment Consultant at Mercer, to discuss the evolving role of OCIO (Outsourced Chief Investment Officer) services for insurance companies. They explore how Mercer's model uniquely integrates support for clients by combining Marsh McLennan’s insurance expertise with Mercer's deep investment consulting resources. Olaolu and Stephanie clarify how OCIO can function either as a full or partial extension of an insurance company's in-house team, offering a range of services from research support to full discretionary management.

 

With the growing complexity in private credit, asset-backed finance (ABF), and investment-grade alternatives, Stephanie explains how OCIO services can support insurers in navigating these emerging asset classes, providing an adaptable, client-specific approach. Olaolu highlights the partnership aspect of Mercer’s model, emphasizing that OCIO clients retain control over strategy while benefiting from Mercer's extensive resources and industry insights.

Episode 253: Capitalizing on the Shift in Private Credit: Strategies for Insurance Companies

In this episode of the InsuranceAUM.com podcast, Stewart Foley hosts Armen Panossian, co-CEO and Head of Performing Credit at Oaktree Capital, for a deep dive into insurers' role in alternative investing, especially in private credit. Armen shares insights on the evolving sentiment in today’s markets, where economic fundamentals, regulatory influences, and the effects of recent rate hikes are shaping debt and equity strategies. He details how technical and regulatory shifts, like the implementation of Basel III in the U.S., are creating new avenues for insurers to capitalize on asset-backed finance while banks retreat from specific lending areas. Armen emphasizes that private credit remains a valuable asset class for insurers, especially given the long-term growth and diversification opportunities it provides alongside efficient rating structures.

 

Looking ahead, Armen sees opportunity in sectors where expertise drives returns, such as specialty finance and asset-backed lending. He also highlights the unique value of rescue lending as more companies face refinancing challenges due to high interest rates. For insurers, he advises considering the distinct advantages of rated feeder note structures to optimize capital efficiency in corporate credit and exploring asset-backed finance for diversification.

Episode 252: Lower Middle Market Opportunities: How Star Mountain Creates Alpha Through Active Lending

In this episode of the InsuranceAUM.com podcast, Stewart Foley welcomes Brett Hickey, Founder and CEO of Star Mountain Capital, for an engaging look at investment in the U.S. lower middle market. Brett shares his unique journey from a small-town upbringing in Canada to founding a prominent private credit firm. Drawing from his early experiences, Brett discusses how Star Mountain Capital builds on core values of community and collaboration, focusing on lending to smaller, often family-owned businesses with strong fundamentals. He explains the firm’s strategic emphasis on these investments, citing the sector's limited competition and inherent value as an uncorrelated asset class. Brett also highlights the opportunity to add alpha to portfolios through Star Mountain's private credit and secondary offerings.

 

Brett explains why lower middle market companies offer significant upside potential, especially given demographic trends and limited access to traditional financing sources. He describes how Star Mountain’s data-driven risk management processes and community-focused investment approach help mitigate risk while positioning companies for growth and long-term success.

 

Episode 251: The Evolution of Home Building: Land Banking, Affordability, and Market Resilience

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley dives into the evolving landscape of real estate finance with Bob Clark, Founding Partner of DW Partners and Chief Investment Officer at Domain Real Estate Partners. The discussion focuses on homebuilder finance, a niche yet critical area within the broader real estate market. Bob shares his journey from a math enthusiast with family ties in the pizza business to becoming a key player in the homebuilding finance industry, explaining how Domain provides crucial funding to homebuilders for land acquisition and development.

 

Bob elaborates on the unique capital needs of the homebuilding industry, the growing trend of homebuilders moving towards asset-light models, and the role of project finance in facilitating land and land development. The conversation also touches on the impact of mortgage rates, Fed policy, and the complex relationship between affordability and supply in the US housing market. Bob’s insights provide a clear understanding of how insurance companies can become more involved in financing these specialized areas, highlighting opportunities for insurers to capitalize on resilient and well-structured credit investments.

 

This episode is perfect for anyone interested in the intersection of real estate finance, homebuilding, and insurance capital, offering a thoughtful analysis of the long-term trends shaping the market.

Episode 250: Best Practices: Strategic Asset Allocation in an Evolving Regulatory Environment

In this insightful episode of the InsuranceAUM.com Podcast, host Stewart Foley engages in a dynamic discussion with Louis Pelosi, Managing Director of Client Solutions at SLC Management's Global Insurance Group. The conversation centers on Best Practices in Strategic Asset Allocation (SAA) in an Evolving Regulatory Environment. Louis shares his deep experience in navigating the complexities of insurance asset management, shedding light on the importance of aligning asset allocation with the liability profiles, regulatory capital concerns, and risk tolerances unique to each insurer.

 

The episode delves into how regulatory changes and the growing use of alternatives—such as private assets and structured securities—are shaping insurers' strategies. Louis highlights how liquidity management and understanding the business’s nuances are critical in constructing efficient portfolios for insurers. Whether you're interested in SAA trends, regulatory insights, or how to effectively manage evolving risks, this episode offers a wealth of practical knowledge for insurance investment professionals.

Episode 249: Zombie Securitizations and Tail Risks: Understanding Fixed Income Challenges

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, sits down with Jake Remley, CFA, senior portfolio manager at Income Research & Management, for a deep dive into the world of structured securities. Jake brings his 20-plus years of experience in securitization to the discussion, explaining complex concepts like "zombie securitizations" and how to identify tail risks in the evolving landscape of asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS).

 

Jake shares insights on avoiding potential pitfalls in structured credit investments and emphasizes the importance of bottom-up analysis in navigating complex securitizations. With real-life examples like the recent write-down of 1740 Broadway, the episode offers practical guidance for institutional investors aiming to understand securitized debt structures and optimize risk-adjusted returns. For those keen on fixed income, this episode sheds light on the nuances of structured credit and its implications for portfolio management.

Episode 248: Why are Residential Whole Loans the Talk of the Town?

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley, CFA, speaks with Alfred Chang, Head of Residential Loan Trading at MetLife Investment Management, about the growing role of residential whole loans in insurance portfolios. As a repeat guest, Alfred shares valuable insights into why this asset class is gaining traction, particularly for life insurers seeking capital efficiency and risk-adjusted returns. He compares the benefits of investing in residential whole loans versus public RMBS, highlighting how the private market offers unique opportunities through better control and transparency. Alfred also explains how a lack of housing supply and improved credit quality have made today’s market very different from the housing crash of 2008.

 

Drawing on more than 10 years of experience in residential credit, Alfred discusses MetLife Investment Management’s approach to mitigating risk through careful loan selection, strong counterparty relationships, and thorough due diligence. He also delves into the operational complexities of managing large volumes of individual loans and how MIM works closely with clients to address the reporting, accounting, and liquidity challenges of this asset class. If you’re interested in how residential whole loans can fit into an insurance company’s broader investment strategy, this episode is a must-listen.

Episode 247: The ABCs of C-PACE: Revolutionizing Green Financing for Insurance Investors

In this episode of the InsuranceAUM.com podcast, host Stewart Foley, CFA, welcomes Jessica Bailey, President and CEO of Nuveen Green Capital, and Laura Parrott, Senior Managing Director and Head of Private Fixed Income at Nuveen. Together, they explore the intricacies of Commercial Property Assessed Clean Energy (C-PACE) financing, a rising asset class that offers insurance investors both strong returns and a chance to positively impact climate change. Stewart, Jessica, and Laura break down how C-PACE can be used to finance energy-efficient building projects, blending public policy with private investment to drive real change in the built environment.

 

Listeners will hear about Jessica and Laura’s personal career paths, the growth of C-PACE, and why it’s become an attractive option for institutional investors, especially those in insurance. From policy challenges to the role of private capital in scaling this green initiative, this episode provides valuable insights for anyone looking to balance financial goals with responsible investing.