TPG Inc. and Jackson Financial Inc. have entered into a long-term strategic investment management partnership.
Under the agreement, TPG will manage a minimum of $12 billion in assets under management for Jackson, with economic incentives tied to a long-term target of $20 billion.
The partnership will initially focus on investment grade asset-based finance and direct lending. The arrangement has a 10-year initial term with automatic one-year renewals through year 15.
As part of the transaction, TPG will acquire a $500 million equity stake in Jackson, representing an approximate 6.5% ownership interest. Jackson will issue 4,715,554 shares of common stock to TPG at $106.03 per share.
Jackson will receive $150 million in TPG common stock, equating to 2,279,109 shares at $65.82 per share. The company may receive additional shares if the partnership grows to $20 billion.
Laura Prieskorn (pictured above, left), president and CEO of Jackson, said the partnership marks a milestone for the company's growth plans.
"I am proud to form this strategic partnership with an organization that shares our commitment to delivering world-class performance through a collaborative and client-centric approach," Prieskorn said.
Jon Winkelried (pictured above, right), CEO of TPG, said the partnership represents an important step in the firm's insurance practice.
"This strategic partnership is an important step in the evolution of our franchise and insurance practice, creating opportunities for us to extend the duration of our capital, while scaling our product capabilities," Winkelried said.
TPG's investment, along with $150 million in excess cash from Jackson, will be used for the initial capitalization of Hickory Brooke Reinsurance Company, a new Michigan-based captive reinsurer established to support sales growth of Jackson's fixed and fixed index annuity products.
The deal reflects a broader trend of convergence between alternative asset managers and life insurers.
According to Morningstar DBRS, large alternative managers have been acquiring or partnering with life insurers and reinsurers since 2019, repositioning traditionally conservative portfolios toward higher-yielding private markets. Around 25% of US insurers are now private equity-backed.
