Seller Details:
Guardian makes a difference in the lives of people when they need it most. With over 160 years of stability and fiscal integrity, they are a trusted resource to generations of families and business owners, inspiring well-being and helping build financial confidence. Today, they stand behind millions of consumers, helping them prepare and plan for a bright future for themselves and their families. They help business owners care for their employees. And we help people recover and thrive in times of unexpected loss. As a modern mutual insurance company, we believe in driving value beyond dividends. They invest in its colleagues, are building an inclusive and innovative culture, and are helping to uplift communities through thoughtful corporate impact programs. Guardian, which is based in New York City, is a leading provider of life, disability, dental, and other benefits, and has received accolades for its culture and service. Their colleagues and financial professionals serve with care and experience, and their commitments rest on a strong financial foundation, which included a 2024 dividend allocation of $1.398 billion – the largest in the company’s history.
Buyer Details:
HPS Investment Partners, LLC is a leading global, credit-focused alternative investment firm that seeks to provide creative capital solutions and generate attractive risk-adjusted returns for our clients. They manage various strategies across the capital structure, including privately negotiated senior debt; privately negotiated junior capital solutions in debt, preferred and equity formats; liquid credit including syndicated leveraged loans, collateralized loan obligations and high yield bonds; asset-based finance and real estate. The scale and breadth of its platform offers the flexibility to invest in companies large and small, through standard or customized solutions. At our core, we share a common thread of intellectual rigor and discipline that enables us to create value for our clients, who have entrusted us with approximately $116 billion of assets under management as of May 2024.
Transaction Summary:
The Guardian Life Insurance Company of America® (“Guardian”), one of the nation’s largest life insurers and a leading provider of employee benefits, and HPS Investment Partners (“HPS”), a leading global credit investment firm with $116 billion in assets under management, have agreed to expand their strategic partnership. Through the enhanced partnership, Guardian will increase its passive minority equity stake in HPS and shift the investment management of approximately $30 billion of assets to HPS, which includes public high yield, investment grade private credit and real estate debt and requity, as well as available commitments. Additionally, Guardian will commit up to $5 billion in new investment grade investments over the next several years. Guardian will retain asset allocation oversight and move investment professionals who work on the transitioning asset classes to HPS to provide continuity in the management of the assets. These teams will further bolster HPS’s in-house capabilities in designing and implementing investment solutions for global insurance clients.