The Institutional Risk Analyst

People in the private credit trade will tell you that raising new money is almost impossible. Why? Because there are growing signs of contagion in the insurance sector after years of dubious business practices by insurers controlled by private credit firms. As details of some of these situations emerge, we suspect that the mainstream media will become more engaged.

Large private credit/equity firms have taken control of many life and annuity insurers over the past decade, transforming them into higher risk, less transparent insurers. For the record, most of the for-profit insurers are also higher-risk, less transparent entities; but generally, not as extreme as the carriers controlled by private credit and private equity sponsors.