Private equity-backed reinsurer Nassau Re has created a new investment unit, called Nassau Private Credit (NPC), as part of the implementation of new investment strategies in its asset management segment.
NPC will enable Nassau Re to invest directly in collateralised loan obligation (CLO) equity and related investments for third-party institutional investors.
The unit will complement the reinsurer’s existing CLO management business, Nassau Corporate Credit LLC, which is led by Alex Jackson and has approximately $2.1 billion in assets under management, having closed four CLOs since its 2017 formation.
Additionally, Nassau Re announced that it plans to expand its existing real estate commercial whole loan capabilities under its Nassau CorAmerica brand to include floating rate debt investments.
The company will also expand its alternative investments practice to grow its private equity investing and co-investment platforms.
“Through these initiatives, we expect to accelerate the growth of our asset management segment, as we increase assets under management and broaden the Nassau Re franchise,” said Phillip J. Gass, Chief Executive Officer of Nassau Re.
“With extensive experience as owner-operators of numerous insurance and financial services businesses, we believe we have a competitive advantage in building a unique platform over the long term,” he explained.
Nassau Re has appointed Bruce C. Brittain and Russell C. Pemberton to lead NPC jointly as Managing Directors and Lead Portfolio Managers for the new NPC unit.
Brittain was most recently a Co-founder and Principal of Morningside Credit Partners, while Pemberton was Head of CLO Syndicate and Origination at RBC Capital Markets.
“We are pleased to welcome Bruce and Russell, who collectively bring over 30 years of experience in structured credit markets, to lead NPC and the expansion of our CLO investment capabilities,” Gass continued.
Brittain has over 14 years’ experience in structured credit products and, prior to his role at Morningside, served as a Managing Director at South Street Securities, where he developed non-bank financing alternatives for CLOs, portfolios of bank loans and other credit assets.
He has previously held roles at Morgan Stanley, where he was responsible for sourcing, structuring and executing solutions-based structured credit products business with institutional clients, and a number of CLO and structured credit focused roles at Bear, Stearns & Co. Inc.
Meanwhile, Pemberton has 15 years’ experience in asset selection as a CLO issuer, structuring, trading, origination and syndication.
Prior to RBC, he held roles at RBS Securities Inc., including as Head of CLO Origination, Head of CLO Structuring and roles on the CLO secondary trading desk, and previously worked within several CLO departments at JPMorgan Securities Inc. and Bear, Stearns & Co. Inc.