InsuranceAUM.com

Episode 205: Direct Lending with Fidelity's David Gaito

In this episode of the InsuranceAUM.com podcast, host Stewart Foley sits down with David Gaito, Head of Direct Lending at Fidelity Investments. David shares his journey from growing up in Pittsburgh to leading Fidelity's direct lending business, emphasizing the importance of working with sophisticated insurance investment professionals.

They discuss the rise of direct lending, the unique challenges and opportunities in the market, and why Fidelity chose to build its direct lending platform from scratch. David provides insights into the regulatory landscape, the importance of scale, and the future of direct lending, particularly in relation to insurance asset management.

Tune in for a deep dive into the intricacies of direct lending and learn why this market is attracting so much attention from sophisticated investors.

Episode 204: Esoteric ABS and the Evolution of Insurance Asset Management

In this episode of the InsuranceAUM.com podcast, host Stewart Foley is joined by Kerry O’Brien, Head of Insurance Portfolio Management at Insight Investment, and Richard Talmage, CFA, Portfolio Manager at Insight Investment. The conversation dives into the evolution of insurance asset management and the burgeoning asset class of esoteric ABS.

Kerry shares insights into her extensive career, the growth of Insight Investment, and the current challenges and opportunities facing insurance asset managers. She emphasizes the sophistication and diversity of today’s insurance portfolios and how Insight's technology and expertise support these complex needs.

Rich discusses the rise of esoteric ABS, detailing the unique opportunities it presents for insurance portfolios. He highlights the importance of relationships and deep institutional resources in underwriting these assets, making a compelling case for their inclusion in diversified portfolios.

Tune in to learn about the evolution of insurance asset management, the benefits of esoteric ABS, and how Insight Investment is leading the charge in this dynamic field.

Episode 203: Shifts and Opportunities in Insurance Asset Allocation with Invesco’s Pete Miller

In this episode of the InsuranceAUM.com podcast, host Stewart Foley welcomes Pete Miller, CFA, FSA, Head of Insurance Solutions, Multi-Asset Strategies at Invesco. They delve into the intricacies of strategic asset allocation for insurance companies, touching on Pete's extensive experience in the industry and his insights on current trends.

Pete shares his background, from growing up in Omaha, Nebraska, to his early career at The Hartford, where he transitioned from traditional actuarial roles to investment management. His journey offers valuable lessons on adaptability and the importance of asking questions.

The discussion highlights the increasing trend toward alternative assets and the opportunities within private credit and commercial real estate debt. Pete also sheds light on global differences in insurance asset management, particularly the advanced ESG integration in Europe and Asia compared to the US.

Tune in for an engaging conversation on the evolving landscape of insurance investments and the strategies that can help insurers navigate this complex environment.

Due Dilly Episode 3: Mutual of Omaha and Shelter Growth Capital – A Partnership in Residential Loan Investing

In this episode of the InsuranceAUM.com podcast, John Patin steps in as the guest host and welcomes two distinguished guests: Justin Mahoney, co-founder and senior portfolio manager of Shelter Growth Capital Partners, and Bryan Lentz, director of public and private structured securities at Mutual of Omaha Insurance Companies.

They dive into the intricacies of residential credit within insurance portfolios, exploring the evolution of the asset class, and its unique risk-reward dynamics. Justin and Bryan share insights into their organizations, how they evaluate residential credit opportunities, and the strategic partnership between Shelter Growth and Mutual of Omaha.

The conversation touches on the role of direct lending in residential credit, the macro and micro perspectives on the housing market, and the importance of customizable solutions for insurance companies. The episode concludes with engaging personal insights from Justin and Bryan, adding a touch of personality to the in-depth discussion.

Episode 201: CMLs in 2024: A repriced market with attractive opportunities?

In this episode of the InsuranceAUM.com Podcast, Stewart Foley hosts Greg Michaud, Head of Real Estate Finance at Voya, for an in-depth discussion on commercial mortgage loans (CMLs) in 2024. They explore whether the repriced market offers attractive opportunities. Greg shares insights from his extensive background in real estate finance, including his early career as a draftsman and appraiser, and his current responsibilities overseeing the sourcing, underwriting, and management of commercial real estate loans at Voya.

The conversation delves into the current state of the office sector, highlighting the stress due to oversupply and liquidity issues, particularly in urban areas. Greg discusses the differences between urban and suburban office properties, noting the potential for suburban offices to be repurposed into mixed-use developments. They also address challenges in the multifamily sector, including rising expenses and interest rates, and emphasize the importance of experienced borrowers in successfully navigating the market.

Greg shares his views on where the best opportunities lie in the real estate market, pointing to preferred equity, mezzanine, and rescue capital for distressed apartments as particularly promising areas. They also discuss the attractiveness of secondary and tertiary markets, the evolving industrial sector, and the potential for open-air storage solutions. Greg concludes with key takeaways for investors, emphasizing the importance of high-quality assets and experienced operators in capitalizing on current market conditions.

This information is proprietary and cannot be reproduced or distributed. Certain information may be received from sources Voya Investment Management considers reliable; Voya Investment Management does not represent that such information is accurate or complete. Certain statements contained herein may constitute "projections," "forecasts" and other "forward-looking statements" which do not reflect actual results and are based primarily upon applying retroactively a hypothetical set of assumptions to certain historical financial data. Any opinions, projections, forecasts and forward looking statements presented herein are valid only as of the date of this document and are subject to change. Voya Investment Management is not soliciting or recommending any action based on any information in this document.

Episode 200: Challenges and Opportunities in the Current PE Market with Northleaf Capital Partners’ Matt Shafer

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley discusses the challenges and opportunities in the current private equity (PE) market with Matt Shafer, Managing Director, Head of Capital Solutions & US Private Equity at Northleaf Capital Partners. Matt shares his insights into the PE landscape, drawing from his extensive experience and his role at Northleaf.

Matt starts by providing a bit of background about himself, growing up in Oneida, New York, and his first job at a local sandwich shop. He also shares what makes insurance asset management so appealing to him, highlighting the complexity and the collaborative nature of working with sophisticated investors in the industry.

The conversation then delves into Northleaf's story, outlining its growth from a small Canadian firm within TD Bank to a significant player in the private markets with over $24 billion in capital. Matt discusses Northleaf's focus on middle-market investments and the benefits of working with experienced private equity sponsors. He explains the firm's strategic partnership with Power Corporation of Canada, which has enhanced their capabilities and offerings, particularly for insurance clients.

Stewart and Matt explore the secondaries market, emphasizing its growth and the benefits it offers to investors, such as J curve mitigation and diversification. Matt also touches on the importance of structured equity in providing non-control capital to private equity-owned businesses, especially in today's higher interest rate environment. He outlines how Northleaf's structured equity solutions can support growth while offering attractive risk-adjusted returns.

Episode 199: Sustainable Infrastructure Credit: the time is now

A multi-decade opportunity for Insurance Investment Portfolios

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley talks with Jorge Camiña, Partner and Head of Denham Sustainable Infrastructure Credit, about the growing opportunities in sustainable infrastructure credit. Jorge emphasizes how global commitments to energy transition and the U.S. Inflation Reduction Act are creating a multi-decade investment landscape, particularly appealing for insurance portfolios.

Jorge explores the benefits of sustainable infrastructure credit, including its resilience, inflation protection, and yield enhancement. He explains how these assets align with insurers' long-term liabilities and provide a stable, attractive return profile. The conversation also touches on the challenges and opportunities for insurance companies to access this market, particularly in light of the changing role of traditional lenders like commercial banks.

Listeners will gain insights into how Denham Sustainable Infrastructure Credit is navigating this evolving landscape and how insurance companies can strategically implement these investments to future-proof their portfolios while contributing to global decarbonization efforts.

 

Episode 198: A Deep Dive into EMD with Aegon AM’s Jeff Grills

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley is joined by Jeff Grills, CFA, Head of US Cross Markets and Emerging Markets Debt at Aegon Asset Management, to delve into the evolving landscape of emerging markets debt (EMD). Jeff shares his extensive experience in EMD, highlighting the growth and maturation of the asset class over the past few decades. They discuss the periods when EMD was most attractive for insurance investors and explore the factors driving its current appeal, including high yields and improved credit quality.

Jeff also provides insights into the challenges and opportunities for insurers when allocating to EMD, particularly in light of global events and central bank activities. He emphasizes the importance of country selection, governance, and understanding the unique risks and rewards associated with this diverse asset class. As the discussion unfolds, listeners will gain a deeper understanding of how to navigate EMD in today’s complex market environment and why it remains a compelling option for insurance portfolios.

The episode wraps up with Jeff sharing some valuable investment wisdom and his thoughts on the broader implications of EMD for insurers. Whether you're new to EMD or looking to refine your strategy, this episode offers a wealth of insights and practical advice.

Episode 195: Infrastructure Equity with Manulife’s John Anderson

In this episode of the InsuranceAUM.com Podcast, host Stewart Foley discusses infrastructure equity with John Anderson, Global Head of Corporate Finance and Infrastructure at Manulife Investment Management and John Hancock Life Insurance. John shares his unique perspective, having experience on both the asset management and operating sides of the insurance business. Together, they explore the role of infrastructure equity in insurance portfolios, highlighting its potential for resilient returns and low volatility, especially during economic downturns.

John delves into the different ways to invest in infrastructure equity, offering insights into regional versus global strategies and the varying risk-return profiles within the asset class. He also addresses the challenges posed by high capital charges and explains how Manulife’s Infrastructure Investment Program has evolved over the years to meet these challenges while delivering value to both the general account and third-party investors.

Listeners will gain an understanding of how infrastructure equity can provide diversification and stable cash flows within insurance portfolios, as well as the impact of the Inflation Reduction Act on renewable energy investments. John’s thoughtful reflections on the industry and his career provide valuable takeaways for anyone interested in insurance asset management.

Episode 194: Residential Debt: A Diversified Income Stream to Write Home About

In this insightful episode of the InsuranceAUM.com Podcast, host Stewart Foley sits down with Eric Atlas, Head of US Residential Debt at Man Group’s Global Private Markets (GPM) division, to discuss the compelling opportunities within residential private credit. Eric brings a wealth of knowledge about the nuances of this asset class, explaining why it is an attractive option for insurance companies seeking diversification and income generation.

The conversation explores the key benefits of residential debt, such as the attractive capital treatment, access to Federal Home Loan Bank financing, and the potential for higher yields compared to traditional agency-backed securities. Eric also delves into the current lending environment, the impact of rising interest rates, and the opportunities arising from the pullback in bank lending. He provides an overview of how Man Group partners with insurers to structure these investments in a way that minimizes the administrative burden while maximizing returns.

For those interested in understanding the unique characteristics of residential debt and how it can fit into an insurance company’s portfolio, this episode offers valuable insights and practical takeaways.