Guardian and HPS deepen strategic partnership
Guardian Life and HPS Investment Partners, a 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 include public high yield, investment grade private credit, and real estate debt and equity, 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.
In 2022, Guardian acquired a minority equity stake in HPS. Back then, HPS managed approximately $80 billion in assets.
“Since the inception of our partnership over two years ago, HPS has been an exemplary provider of investment solutions. Today’s announcement is a natural evolution of our deep strategic relationship and an exciting development for our policyholders who will further benefit from HPS’s differentiated investment capabilities at greater scale and with additional depth across credit asset classes. This reflects Guardian’s commitment to continually strive for superior risk adjusted returns so we can deliver on our promises and best support the well-being of our customers, colleagues, and communities.” – Andrew McMahon, Guardian Chief Executive Officer and President.
“We have long been impressed by Guardian’s unwavering commitment to helping policyholders achieve their financial goals through market-leading investment strategies and are excited to expand the engagement between our two firms. This deepening of our partnership solidifies HPS’s position as a provider of choice for many of the world’s largest and most sophisticated insurers, and validates our focus on partnering with insurers, rather than competing with them. We are thrilled to welcome to the HPS team this talented group of investment professionals with multiple decades of experience in investing insurance assets.” – Scott Kapnick, Chief Executive Officer of HPS.
