Guardian and HPS deepen strategic partnership

Written by Adam Cadle

14/08/2024

The Guardian Life Insurance Company of America (Guardian) and HPS Investment Partners (HPS) 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 around $30bn 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 $5bn in new investment grad 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.

"Since the inception of our partnership over two years ago, HPS has been an exemplary provider of investment solutions," said Andrew McMahon, Guardian CEO and President.

"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."

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