At a glance
- A third of $6 trillion is about $2 trillion, but private credit spans investment grade private placements and lower middle market direct lending.
- The return drivers differ by segment, so the mix is a due-diligence item for a general account.
- The piece follows Insurance AUM Journal's August podcast episode making the case that portfolio management, not underwriting, separates private credit outcomes, as Private Wealth Daily previously reported.
U.S. life insurers hold as much as a third of their $6 trillion in assets in private credit, according to the first installment of a Deerpath Capital-sponsored series published Nov. 2 by Insurance AUM Journal.
A third of $6 trillion is about $2 trillion, but private credit spans investment grade private placements and lower middle market direct lending. Nelson Pereira writes that insurance portfolios tend to concentrate at one end of that range.
The return drivers differ by segment, so the mix is a due-diligence item for a general account. The yield depends on where the book sits between investment grade placements and lower middle market loans.
The piece follows Insurance AUM Journal's August podcast episode making the case that portfolio management, not underwriting, separates private credit outcomes, as Private Wealth Daily previously reported.
Deerpath describes itself as a senior lender to sponsor-backed U.S. lower middle market companies and says it has focused on that segment for nearly two decades.
Reported by the Insurer portfolios desk from Insurance AUM Journal. Published . Corrections