Insurance capital: Rich rewards for those that can step up

A huge pool of insurance industry money could be headed for private debt but there are many levels of complexity for fund managers to navigate. Insurance and debt insiders talk to about the potential benefits and challenges of partnering up.

With regulatory regimes varying between countries – and in the US, between states – and insurers having different needs and restrictions, competing for prized “permanent capital” is no easy task.

“Insurers present a unique set of considerations; managing money for them does have layers of complexity that you don’t necessarily find with other institutional investors,” says Steve Peacher, executive chair of SLC Management, the institutional asset manager for Sun Life.

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