Blackstone Inc., the largest private equity manager by assets, has announced its plans to create a new business unit called Blackstone Credit & Insurance. This new group will integrate the firm’s corporate credit, asset-based finance, and insurance divisions, aiming to streamline the investment process for clients and serve as a one-stop destination for alternative investments like private credit. Blackstone CEO and Co-Founder, Steve Schwarzman, expressed his ambitious vision for the group, stating that he sees the opportunity for it to reach $1 trillion in assets under management within the next 10 years.
The decision to form Blackstone Credit & Insurance comes as the demand for credit and insurance solutions is rapidly growing among Blackstone’s clients. Jon Gray, Blackstone’s President and Chief Operating Officer, highlighted the exceptional demand in this segment, stating that it has become the fastest-growing area within the company. The integration of these divisions will allow Blackstone to be a more effective lender and better serve its insurance, pension fund, and private wealth clients.
This move by Blackstone is particularly relevant in the current market environment, where group and individual annuity sales in the US are reaching record levels. Additionally, an increasing number of corporate pension plan sponsors are considering or engaging in pension risk transfer transactions to offload some or all of their pension liabilities. Blackstone’s new group aims to capitalize on these trends and offer comprehensive credit and insurance solutions to address the evolving needs of its clients.
The predecessor units of Blackstone’s new group have been experiencing significant growth in recent years. Collectively, they have doubled their assets under management to $295 billion in the last three years, with Blackstone’s insurance assets alone tripling since 2020. To support the formation of Blackstone Credit & Insurance, the firm has announced several promotions within the organization. Gillas Dellaert, the current global head of insurance solutions, will be promoted to global head of BXCI, while Dwight Scott, global head of credit, will become chairman of BXCI.
Both Dellaert and Scott expressed their enthusiasm for the new group and its potential to expand Blackstone’s credit and insurance platforms. They believe that the combination of the firm’s credit activities will further enhance Blackstone’s competitive advantage, allowing them to better serve their clients. Scott also emphasized the favorable market conditions for private credit investments, particularly in the current elevated base rate environment. He believes that it is currently the best risk-adjusted environment for this asset class in decades.
Overall, Blackstone’s creation of the Credit & Insurance business unit reflects the firm’s commitment to meeting the evolving needs of its clients and capitalizing on market trends. With its strong track record and extensive resources, Blackstone is well-positioned to further expand its presence in the credit and insurance sectors.
Tags: Blackstone, Blackstone Credit & Insurance, Dwight Scott, Gillas Dellaert, Jon Gray, Steve Schwarzman
Original Story at www.ai-cio.com – 2023-09-14 14:56:39
