HPS to manage $30 billion of Guardian's general account and managed assets and available commitments, with additional future commitments of up to $5 billion over the next several years
NEW YORK, Aug. 13, 2024 /PRNewswire/ -- The Guardian Life Insurance Company of America ("Guardian"), one of the nation's largest life insurers and a leading provider of employee benefits, and HPS Investment Partners ("HPS"), a leading global credit investment firm with $116 billion in assets under management, today announced that they have agreed to expand their strategic partnership. Through the enhanced partnership, Guardian will increase its passive minority equity stake in HPS and shift the investment management of approximately $30 billion of assets to HPS, which include public high yield, investment grade private credit, and real estate debt and equity, as well as available commitments. Additionally, Guardian will commit up to $5 billion in new investment grade investments over the next several years.
Guardian will retain asset allocation oversight and move investment professionals who work on the transitioning asset classes to HPS to provide continuity in the management of the assets. These teams will further bolster HPS's in-house capabilities in designing and implementing investment solutions for global insurance clients.
"Since the inception of our partnership over two years ago, HPS has been an exemplary provider of investment solutions," said Andrew McMahon, Guardian Chief Executive Officer and President. "Today's announcement is a natural evolution of our deep strategic relationship and an exciting development for our policyholders who will further benefit from HPS's differentiated investment capabilities at greater scale and with additional depth across credit asset classes. This reflects Guardian's commitment to continually strive for superior risk adjusted returns so we can deliver on our promises and best support the well-being of our customers, colleagues, and communities."
"We have long been impressed by Guardian's unwavering commitment to helping policyholders achieve their financial goals through market-leading investment strategies and are excited to expand the engagement between our two firms," commented Scott Kapnick, Chief Executive Officer of HPS. "This deepening of our partnership solidifies HPS's position as a provider of choice for many of the world's largest and most sophisticated insurers, and validates our focus on partnering with insurers, rather than competing with them. We are thrilled to welcome to the HPS team this talented group of investment professionals with multiple decades of experience in investing insurance assets."
Berkshire Global Advisors is serving as exclusive financial advisor to Guardian and Debevoise & Plimpton LLP is serving as legal counsel to Guardian. Ardea Partners is serving as lead financial advisor and J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BofA Securities, Inc. and Morgan Stanley & Co. LLC are acting as co-financial advisors to HPS. Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal counsel to HPS.
About Guardian
Guardian makes a difference in the lives of people when they need us most. With over 160 years of stability and fiscal integrity, we are a trusted resource to generations of families and business owners, inspiring well-being and helping build financial confidence. Today, we stand behind millions of consumers, helping them prepare and plan for a bright future for themselves and their families. We help business owners care for their employees. And we help people recover and thrive in times of unexpected loss. As a modern mutual insurance company, we believe in driving value beyond dividends. We invest in our colleagues, are building an inclusive and innovative culture, and are helping to uplift communities through thoughtful corporate impact programs. Guardian, which is based in New York City, is a leading provider of life, disability, dental, and other benefits, and has received accolades for its culture and service. Our colleagues and financial professionals serve with care and experience, and our commitments rest on a strong financial foundation, which included a 2024 dividend allocation of $1.398 billion – the largest in the company's history. For more information, visit guardianlife.com or follow us on Facebook, LinkedIn, and YouTube.
About HPS Investment Partners
HPS Investment Partners, LLC is a leading global, credit-focused alternative investment firm that seeks to provide creative capital solutions and generate attractive risk-adjusted returns for our clients. We manage various strategies across the capital structure, including privately negotiated senior debt; privately negotiated junior capital solutions in debt, preferred and equity formats; liquid credit including syndicated leveraged loans, collateralized loan obligations and high yield bonds; asset-based finance and real estate. The scale and breadth of our platform offers the flexibility to invest in companies large and small, through standard or customized solutions. At our core, we share a common thread of intellectual rigor and discipline that enables us to create value for our clients, who have entrusted us with approximately $116 billion of assets under management as of May 2024. For more information, please visit .
Media Contacts
Guardian
Brendan Beaver
[email protected]
HPS Investment Partners
Mike Geller / Josh Clarkson
646-818-9018 / 646-818-9259
[email protected] / [email protected]
Disclaimer
Guardian is a registered trademark of The Guardian Life Insurance Company of America. Copyright 2024 The Guardian Life Insurance Company of America.
Dividends are not guaranteed. They are declared annually by Guardian's Board of Directors. The total dividend calculation includes mortality experience and expense management as well as investment results.
Financial information concerning Guardian as of December 31, 2023, on a statutory basis: Admitted assets = $80.3 billion; liabilities = $71.2 billion (including $58.0 billion of reserves); and surplus = $9.1 billion.
SOURCE Guardian and HPS Investment Partners
