Updated with correction
Private markets investment manager Hamilton Lane and the Guardian Life Insurance Co. of America, a large, U.S.-based life insurer and provider of employee benefits, announced on Monday a new partnership that will include Hamilton Lane managing Guardian’s existing private equity portfolio of nearly $5 billion.
In addition, Guardian has committed to investing approximately $500 million per year in private equity for the next 10 years through Hamilton Lane. The commitment maintains Guardian’s typical annual contribution to private equity and maintains the insurer’s general account target allocation goals.
The allocation pledge includes $250 million in seed capital for tactical new evergreen initiatives to support the continued growth of Hamilton Lane’s Global Evergreen Platform.
“Partnering with Hamilton Lane allows us to enhance our investment and wealth management capabilities while supporting the financial well-being of our customers and policyholders through innovative, long-term strategies,” Andrew McMahon, Guardian’s chair and CEO, said in a statement.
According to the announcement, the partnership transaction is expected to close at the end of 2025. Guardian investment professionals currently supporting the private equity portfolio are expected to join Hamilton Lane after the transaction closes, expanding the firm’s insurance expertise.
The deal is expected to provide Guardian access to a wider range of investment opportunities for its general account through Hamilton Lane, in a mix of primary, co-investment and secondary market opportunities. Guardian also will receive equity warrants, along with additional financial incentives to support the partnership’s shared goals of accelerating growth and driving value creation, according to the announcement.
The partnership will also include Hamilton partnering with Guardian’s registered broker/dealer and registered investment adviser, Park Avenue Securities, to provide investments, support and education to PAS clients.
PAS works with more than 2,400 advisers and had approximately $58.5 billion of client assets under management as of December 30, 2024.
The tie-up, the latest between an insurer and an asset manager, is intended to enhance Hamilton Lane’s insurance solutions platform, which leverages the firm’s depth, scale and proprietary private markets data to structure customized solutions that address the specific needs of insurers. As of June 30, Hamilton Lane managed $14.82 billion in discretionary insurance assets and $105.15 billion in non-discretionary assets.
“This partnership is a testament to the strength of our Insurance Solutions platform and the trust we’ve built with leading institutional investors,” said Erik Hirsch, Hamilton Lane’s co-CEO, in a statement.
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Tags: Guardian Life Insurance Company of America, Hamilton Lane, Insurance Asset Management, Private Equity, strategic partnerships