HARTFORD, Conn. & NEW YORK--(BUSINESS WIRE)--Nassau Financial Group (“Nassau”), a leading provider of fixed annuities and asset management, and Golub Capital, a market-leading direct lender and experienced credit asset manager, today announced they have signed a definitive agreement to enter into a strategic partnership.
As part of this strategic partnership, Nassau will receive a $200 million minority non-voting common equity investment from Golub Capital. This investment provides capital to support Nassau’s growth strategy, including through organic growth and acquisitions, and further strengthens its balance sheet. Nassau and Golub Capital also will enter into a long-term Investment Management Agreement that will provide Nassau’s insurance subsidiaries with access to Golub Capital’s middle market direct lending strategies, through tailored capital-efficient solutions.
“We are excited to expand our investor group as we begin a new strategic partnership with Golub Capital,” said Phil Gass, Chairman and CEO of Nassau. “In addition to their significant capital investment, Golub Capital brings a market-leading track record in direct lending that will expand our balance sheet investment capabilities in support of our continued growth.”
“Nassau has built an outstanding annuities business, and we are excited to be a part of the next chapter of its growth. This partnership also represents another key milestone in our Insurance Solutions efforts,” said David Golub, President of Golub Capital. “We are delighted to provide Nassau with both capital-efficient investment solutions in our market-leading direct lending capabilities and strategic capital.”
With this transaction, Golub Capital will be the largest minority equity holder in Nassau, following investments from Fortress Investment Group in 2023 and Wilton Reassurance Company and Stone Point Credit in 2021. Nassau was founded with an initial capital commitment along with subsequent growth capital provided by Golden Gate Capital, which remains Nassau’s majority controlling equity holder.
Goldman Sachs served as exclusive financial advisor and Sidley Austin LLP served as legal advisor to Nassau. Morgan Stanley & Co. LLC served as exclusive financial advisor and Kirkland & Ellis and Foley Hoag served as legal advisors to Golub Capital.
The transaction is expected to close in the second half of 2024 and is subject to customary closing conditions, including receipt of regulatory approvals.
About Nassau Financial Group
Based in Hartford, Connecticut, Nassau Financial Group is a growth-focused financial services company with insurance and asset management businesses. A leading fixed annuity insurance carrier, Nassau provides comprehensive and customizable retirement solutions, delivered with advanced digital capabilities and industry-leading service. Nassau Asset Management oversees the assets of Nassau’s insurance companies and offers its specialty investment strategies to third-party clients. These strategies include public and private debt, CLO debt and equity, real estate debt and equity, and alternatives.
Nassau was founded in 2015 and has grown to $24 billion in assets under management and $1.6 billion in total adjusted capital, and about 379,000 policies and contracts as of March 31, 2024. For more information, visit nfg.com.
About Golub Capital
Golub Capital is a market-leading, award-winning direct lender and experienced credit asset manager. Golub Capital specializes in delivering reliable, creative and compelling financing solutions to companies backed by private equity sponsors. The Firm’s sponsor finance expertise also forms the foundation of its Broadly Syndicated Loan and Credit Opportunities investment programs. Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from private equity sponsors and investors.
As of April 1, 2024, Golub Capital had over 925 employees and over $70 billion of capital under management, a gross measure of invested capital including leverage. The Firm has offices in North America, Europe and Asia. For more information, please visit golubcapital.com.
