Reported 1 day ago
Major private credit managers are utilizing a less-known investment vehicle named rated feeders to draw significant capital from insurance companies. This structure allows insurers to invest in private debt while minimizing capital reserves due to favorable regulatory treatment. While popular among private equity players for financing leveraged companies, these instruments have faced scrutiny from regulators concerned about the lack of transparency and potential circumvention of risk capital rules. Despite concerns, proponents argue that rated feeders offer a beneficial opportunity for the insurance industry to engage in private credit investments efficiently.
Source: YAHOO