Considering insurance as the next big bet for PE
- PE has been actively buying insurance assets, particularly variable annuities books of business. Insurers are rationalizing their portfolios to constitute low-capital intensive products and services.
- PE may be better positioned than insurers to invest premiums collected from annuity sales to generate higher ROIs because insurers continue to face an investment environment constrained by low interest rates.
- Technology is allowing the insurance industry to revisit their business models, acquire customers through new channels, and create essential user experiences. Insurers must rethink who they are, what they offer and how they differentiate.
Expanding executive leadership as PE looks to next generation
- Several listed PE firms have looked internally for their succession planning and some of the changes took place at the start of 2018. Firms want to assure their LP’s that the value of their brand will continue to grow under new leadership.
- Apollo Global Management LLC, Ares Management LP, Carlyle Group LP and Och-Ziff Capital Management Group LLC are making changes in leadership roles during Q1 2018.
Pursuing retail investors
- Lower investment returns are driving a new breed of alternative asset classes, according to an EY survey of 50 private sector stakeholders, corporate pension and retirement organizations, and asset managers.
- Social security, pension and retirement providers are searching for additional sources of income and uncorrelated returns that extend much more to private equity, private debt, alternative credit real estate and infrastructure.
- Increasing alterative asset exposure may act as a catalyst for many providers to fundamentally transform their governance and organization, as well as increase transparency within communications.