Nassau Financial Group, a provider of fixed annuities and asset management, and Golub Capital, a direct lender and credit asset manager, signed a definitive agreement to enter into a strategic partnership.
As part of this strategic partnership, Nassau will receive a $200 million minority non-voting common equity investment from Golub Capital. This investment provides capital to support Nassau’s growth strategy, including through organic growth and acquisitions, and further strengthens its balance sheet. Nassau and Golub Capital also will enter into a long-term investment management agreement that will provide Nassau’s insurance subsidiaries with access to Golub Capital’s middle market direct lending strategies through tailored capital-efficient solutions.
“We are excited to expand our investor group as we begin a new strategic partnership with Golub Capital,” Phil Gass, chairman and CEO of Nassau, said. “In addition to their significant capital investment, Golub Capital brings a market-leading track record in direct lending that will expand our balance sheet investment capabilities in support of our continued growth.”
“Nassau has built an outstanding annuities business, and we are excited to be a part of the next chapter of its growth. This partnership also represents another key milestone in our Insurance Solutions efforts,” David Golub, president of Golub Capital, said. “We are delighted to provide Nassau with both capital-efficient investment solutions in our market-leading direct lending capabilities and strategic capital.”
With this transaction, Golub Capital will be the largest minority equity holder in Nassau, following investments from Fortress Investment Group in 2023 and Wilton Reassurance and Stone Point Credit in 2021.
Goldman Sachs served as exclusive financial advisor and Sidley Austin served as legal advisor to Nassau. Morgan Stanley served as exclusive financial advisor and Kirkland & Ellis and Foley Hoag served as legal advisors to Golub Capital.
The transaction is expected to close in the second half of 2024 and is subject to customary closing conditions, including receipt of regulatory approvals.
