Nassau Financial Group Partners with Golub Capital for Growth

Nassau Financial Group Partners with Golub Capital for Growth

Nassau Financial Group and Golub Capital have successfully closed a strategic partnership, marking a significant milestone in their goals for growth and market expansion. This collaboration comes after all closing conditions were met, solidifying their commitment to the market and their respective client bases.

Investment Details and Strategic Implications

As part of this partnership, Nassau Financial Group received a promising $200 million minority non-voting common equity investment from Golub Capital. This funding is instrumental in supporting Nassau's growth strategy. It aims to bolster areas such as organic expansion, acquisitions, and enhancing their overall balance sheet, ensuring that Nassau can effectively navigate upcoming market challenges and opportunities.

A Long-Term Relationship for Mutual Growth

Furthermore, Nassau and Golub Capital have entered into a long-term Investment Management Agreement. This agreement is designed to provide Nassau’s insurance subsidiaries with access to unique and customized middle market direct lending strategies offered by Golub Capital. Such tailored capital-efficient solutions are set to position Nassau favorably within the competitive landscape of financial services.

Golub Capital’s Role and Historical Investments

With this recent investment, Golub Capital has become the largest minority equity holder in Nassau. This follows earlier significant financial commitments from other entities, including Fortress Investment Group in 2023, Wilton Reassurance Company, and Stone Point Credit in 2021. Notably, Nassau Financial Group was established with initial capital from Golden Gate Capital, which continues to be the majority controlling equity holder.

Expert Financial Guidance

To navigate this considerable partnership, industry leaders provided expert counsel. Goldman Sachs acted as the exclusive financial advisor to Nassau, while Sidley Austin LLP served as its legal advisor. On the other side, Morgan Stanley & Co. LLC offered exclusive financial advice to Golub Capital, with Kirkland & Ellis and Foley Hoag acting as legal advisors. This network of experienced professionals emphasizes the strategic nature of this investment.

Understanding Nassau Financial Group

Nassau Financial Group is centered in Hartford and is recognized as a dynamically growing financial services organization. It operates with a comprehensive and digital-first platform encompassing both insurance and asset management segments. Its fixed annuities are designed to provide clients with customizable retirement solutions, accompanied by advanced digital features and a commitment to exceptional service.

Growth and Assets Under Management

Since its founding in 2015, Nassau Financial Group has experienced impressive growth, now managing assets amounting to $24.8 billion and a total adjusted capital of $1.6 billion. This achievement reflects the confidence clients have in Nassau's ability to deliver innovative financial solutions. The company currently oversees around 370,000 policies and contracts, showcasing its broad reach in the insurance landscape.

Insights into Golub Capital

Golub Capital stands out as a premier direct lender and private credit manager, widely regarded for its innovative financing solutions. The firm specializes in providing tailored financial products to companies associated with private equity sponsorships. Their focus on building strong, enduring partnerships illustrates their commitment to fostering win-win relationships that benefit both sponsors and their investors.

Extensive Reach and Resources

As of the latest update, Golub Capital boasts a workforce exceeding 1,000 employees and manages more than $70 billion in capital. With offices located across North America, Europe, and Asia, Golub Capital is well-positioned to deliver its financial expertise to global markets. Their reputable standing within the industry is a testament to their reliability and commitment to excellence.

Frequently Asked Questions

What is the significance of the $200 million investment for Nassau?

The $200 million investment from Golub Capital is crucial for Nassau's growth strategy, enabling organic expansion, acquisitions, and balance sheet strengthening.

How does the partnership benefit Nassau's insurance subsidiaries?

Nassau's insurance subsidiaries will gain access to Golub Capital's middle market direct lending strategies through a long-term Investment Management Agreement.

Who provided advisory services for this strategic partnership?

Goldman Sachs and Sidley Austin LLP advised Nassau, while Morgan Stanley & Co. LLC, Kirkland & Ellis, and Foley Hoag advised Golub Capital.

What was the founding inspiration behind Nassau Financial Group?

Nassau Financial Group was founded in 2015, initially backed by Golden Gate Capital to create a growth-focused and digitally enabled financial services institution.

Where can I learn more about Nassau Financial Group and Golub Capital?

For more information, you can visit the official websites of Nassau Financial Group and Golub Capital.

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