TPG and Jackson Financial Forge Strategic Partnership in Investment Management

TPG Inc. and Jackson Financial Inc. have announced a strategic partnership in investment management, aimed at overseeing and optimizing up to $20 billion in assets. Initially, TPG will manage at least $12 billion, focusing on investment-grade asset-based finance and direct lending. This 10-year agreement, with renewal options extending to 15 years, highlights a commitment to long-term fiscal growth and regulatory compliance requirements.

As part of this partnership, TPG is acquiring a $500 million equity stake in Jackson, translating to a 6.5% ownership interest. Jackson will facilitate this transaction through the issuance of 4,715,554 shares priced at $106.03 each. Additionally, TPG will provide Jackson with $150 million in common stock, equating to 2,279,109 shares at $65.82 per share, with potential for further shares if investment management targets are achieved.

Laura Prieskorn, Jackson's president and CEO, emphasized that this partnership aligns with their growth and risk management strategy. Jon Winkelried, CEO of TPG, noted that this collaboration strengthens their foothold in the insurance sector, allowing the extension of capital investment durations and enhancement of premium product offerings. The alliance includes establishing Hickory Brooke Reinsurance Company, a new captive reinsurer aimed at bolstering Jackson’s fixed and fixed index annuity sales.

This partnership underscores a significant trend where alternative asset managers engage with life insurers and reinsurers, driving conservative portfolios towards profitable private markets. According to Morningstar DBRS, about 25% of U.S. insurers are now underpinned by private equity, highlighting an evolving landscape of underwriting and claims operations primed for innovation.