Japan’s Nippon Life Insurance Co. is investing an additional $550 million in Los Angeles-based money manager TCW Group, as the insurance firm moves to expand its asset management capabilities.
Nippon Life also intends to commit up to $3.25 billion to TCW’s private credit strategies, a statement said.
Fixed-income specialist TCW, led by CEO Kathryn Koch, had $202.8 billion in assets under management as of Sept. 30. Nippon, which already owns 27.17% of the firm, intends to buy about $250 million in convertible notes and $300 million in preferred securities of TCW, a statement said.
The convertible notes give Nippon Life an additional up to 10% stake after three years, Bloomberg reported.
Nippon Life bought its original 25% stake in 2017 from the Carlyle Group. The investment “has been contributing to the improvement of investment return of Nippon Life group’s insurance products by utilizing its advanced investment skills,” the statement said, adding that TCW has in return been providing Japanese clients with investment opportunities in global assets, predominantly in the U.S.
A top priority for Nippon Life is establishing a global asset management capability, and TCW “is a core company within our global asset management business.” The insurer’s other investment management capabilities fall under Nissay Asset Management, with ¥41.5 trillion ($276.5 billion) in assets under management.
As of Dec. 12, TCW’s ownership was comprised about 34% the Carlyle Group, 27% Nippon Life, and 39% TCW management and employees.
Spokespeople for Nippon and TCW could not immediately be reached for comment.
On Dec. 11, Nippon Life announced the acquisition of global life insurance firm Resolution Life in a deal that valued the insurer at $10.6 billion. In May, insurance company American International Group agreed to sell a 20% stake in Corebridge Financial to Nippon Life for about $3.8 billion in cash.
Nippon will acquire the firm from Blackstone, which will continue to run Resolution Life’s private credit and other investments.
