Global investment manager Sixth Street will manage $13bn (£10.5bn) of assets for Northwestern Mutual as part of a newly-inked long-term strategic partnership.
Under the terms of the deal, Northwestern Mutual has also acquired a minority equity interest in Sixth Street.
The strategic partnership will support Northwestern Mutual’s long-term diversified investment strategy for its $320bn institutional investment portfolios.
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Sixth Street will manage at least $13bn of these assets initially, with the potential to scale over time. The investments will span Sixth Street’s multi-strategy private capital approach, which includes asset-based finance and opportunistic investments in real estate and infrastructure debt and equity.
“This new partnership with Sixth Street significantly expands Northwestern Mutual’s investment capabilities by providing increased access to attractive private investments – all of which complement our internal team and will contribute to Northwestern Mutual’s longstanding history of delivering value to policyowners,” said Jeb Bentley, chief investment officer at Northwestern Mutual.
“Sixth Street has industry-leading asset origination and investment management capabilities, a proven track record, and a compelling culture, and we look forward to building a mutually beneficial, highly successful long-term partnership.”
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“We are thrilled to embark on this partnership with Northwestern Mutual,” said Josh Easterly, co-president and co-chief investment officer, Sixth Street.
“As one of the most respected leaders in the insurance and wealth management space, Northwestern Mutual’s financial strength is unmatched, and we look forward to further fortifying their investment platform.”
Last year, Northwestern Mutual announced that it expects to deliver a record $8.2bn in dividends to its policyowners in 2025. The company also reported record revenues and a surplus of more than $36bn and $38bn, respectively.
Morgan Stanley & Co served as exclusive financial advisor and Debevoise & Plimpton served as legal advisor to Northwestern Mutual.
Evercore served as financial advisor and Simpson Thacher & Bartlett and Cleary Gottlieb Steen & Hamilton served as legal advisors to Sixth Street.
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