TPG has agreed a strategic partnership with Jackson Financial under which the private equity firm will initially manage $12bn of assets for the US retirement annuity provider, with the deal expected to be completed in the first quarter, according to a report by Bloomberg.
Under the agreement, TPG’s credit business will invest on behalf of Jackson across investment-grade asset-backed credit and direct lending strategies. The firms said the long-term target for the partnership is $20bn.
As part of the transaction, TPG will also make a $500m minority investment in Jackson, representing a 6.5% stake in the Michigan-based insurer. Jackson will receive $150m in TPG shares at market value, with the potential for additional equity should the managed assets reach $20bn.
The deal reflects a broader trend among alternative asset managers seeking long-term capital by partnering with or investing in insurance companies, as fundraising from traditional institutional investors is limited.
