Market updates and sector developments

MassMutual has become a minority equity owner in ATLAS SP Partners and a capital partner to the ATLAS platform. As part of the multi-billion-dollar commitment, MassMutual has also agreed to invest in Apollo’s asset-backed finance (ABF) franchise.

These investments will allow MassMutual to access predominately investment-grade, asset-backed credit originated by ATLAS SP and across the broader Apollo ecosystem, alongside Apollo’s retirement services businesses. The commitments will also bolster ATLAS SP’s capacity to provide warehousing and other investment grade asset-backed solutions to the more than 200 financing clients of ATLAS SP.

Since its launch in February 2023, ATLAS SP has originated approximately US$24bn in assets to support its clients and the real economy. In addition to MassMutual, a wholly owned subsidiary of the Abu Dhabi Investment Authority made a cornerstone commitment to the ATLAS SP business in June 2023, and the business continues to attract third-party capital partners seeking to access high grade, senior secured asset-backed credit.

Apollo believes the private ABF market represents a US$20trn opportunity, primarily in the investment grade space.

In other news…

Alternative risk solutions practice formed
Marsh has launched a global alternative risk solutions practice, bringing together the firm’s expertise and strategy in parametric solutions, alternative risk transfer, captives and complex risk. The practice will leverage Marsh’s resources, data and technologies to drive innovation and accelerate the development of new risk solutions for the benefit of clients.

The global alternative risk solutions unit aligns existing capabilities from Marsh specialty, global placement, captive solutions and advisory. It also will work with Guy Carpenter to access broad capital pools, including ILS markets, for corporate clients. The aim is to provide clients with a comprehensive and integrated approach to optimising risk capital.

Leading the new practice is Christophe Letondot, who has 30 years of experience in financial services, including nearly a decade with Marsh working on alternative risk transfer, structured credit and parametric solutions. He will report to Pat Donnelly, president of Marsh specialty and global placement, and work closely with John Donnelly, global head of placement, and other Marsh leaders to integrate and deliver capabilities to clients.

Corinne Smith