Sector developments and company hires

Asset managers partner on pensions initiative
DWS has launched the DWS Secured Income Fund, aimed at small to medium-sized defined benefit pension plans seeking stable, long-term returns. The fund provides a diversified portfolio of secured income assets, including ABS and CLO bonds.

Over half of UK defined benefit pension plans are in deficit, with insufficient assets to meet their liabilities. For small and mid-sized defined benefit pension funds that may have been restricted from investing in individual asset classes, due to minimum size or governance requirements, this fund offers the opportunity to invest in a pooled fund of secured income assets.

The fund is a partnership with Tikehau Capital, as part of a strategic alliance with DWS in connection with growth initiatives.

EMEA
Alok Kumar has rejoined Channel Capital Advisors as head of portfolio analysis in the trade finance team, responsible for leading the sourcing, analysing and negotiating of transactions. Kumar was previously chief risk officer at fintech start-up Finverity, having joined Channel for the first time as risk management officer in December 2016. Before that, he worked at Kotak Mahindra Bank, Union Bank of India, HSBC and HDFC Bank.

Gallagher beefs up in ILS
Arthur J Gallagher & Co is set to acquire certain Willis Towers Watson reinsurance, specialty and retail brokerage operations as part of a proposed regulatory remedy for the pending Aon and Willis Towers Watson combination. The operations - which include certain Willis Re treaty and facultative reinsurance brokerage units, as well as certain UK specialty, European and North American brokerage operations – generated US$1.3bn of estimated pro forma revenue and US$357m of estimated pro forma EBITDAC for the year ended 31 December 2020.

Under the agreement, Gallagher will acquire the combined operations for a gross consideration of US$3.57bn. The acquisition is expected to enhance the firm’s ILS and analytics capabilities, including catastrophe modelling, dynamic financial analysis, rating agency analysis and capital modelling.

The transaction is expected to close during 2H21, with the integration of over 6,000 new colleagues likely to take approximately three years.

Irish mortgage agreement inked
M&G has launched long-dated fixed rate mortgages in Ireland with its origination partner Finance Ireland. The move will provide homeowners with access to a range of mortgages of up to 20 years, a first for the Irish market.

M&G has been Finance Ireland’s long-standing residential funding mortgage partner since 2018. The agreement has been made by the specialty finance team within M&G’s £67bn private and alternative assets division.

Due to regulatory changes resulting in banks managing capital and balance sheets more efficiently, asset managers have been stepping up to provide long-term capital to the consumer lending market on behalf of institutional investors seeking long-term income and diversification with a premium to the public markets.

North America
Adams Street Partners has recruited Leland Richards as a partner on the private credit team. He is responsible for supporting all aspects of the team’s decision-making processes, including sourcing and structuring investment opportunities, as well as helping shape the strategic direction of the business. Richards most recently served as md in Churchill Asset Management’s sponsor coverage group, having previously worked at GE Capital and JPMorgan.