Golub Capital, Nassau Partner to Offer Private Credit to Insurers

Private credit fund manager Golub Capital has partnered with Nassau Financial Group, an insurance and financial services firm, which will give the firm’s insurance subsidiaries access to Golub Capital’s middle market direct lending strategies. Golub is one of the larger providers of direc loans to businesses.

As part of this agreement, Golub Capital, which oversees more than $70 billion in assets, will invest $200 million in minority non-voting common equity in Hartford, CT-based Nassau, becoming the largest minority equity holder in the firm. The investment provides capital to support Nassau’s growth strategy and further strengthens its balance sheet, the firms said.

“In addition to their significant capital investment, Golub Capital brings a market-leading track record in direct lending that will expand our balance sheet investment capabilities in support of our continued growth,” said Phil Gass, Nassau chairman and CEO.

The Golub investment follows investments from Fortress Investment Group in 2023 and Wilton Reassurance Company and Stone Point Credit in 2021. Nassau was founded in 2015 with an initial capital commitment along with subsequent growth capital from Golden Gate Capital, which remains Nassau’s majority controlling equity holder.

The firm has grown to $24 billion in assets under management and $1.6 billion in total adjusted capital.

In April, Golub launched its insurance solutions team, with Jennifer Potenta, a former senior managing director at MetLife Investment Management, serving as managing director and head of insurance solutions.

The transaction is expected to close in the second half of 2024.