HARTFORD, Conn.--(BUSINESS WIRE)--Nassau Re today announced that it is launching new investment strategies in its asset management segment, expanding into additional specialty finance asset classes as it grows third-party assets under management. With the creation of Nassau Private Credit LLC (NPC), Nassau Re will invest directly in collateralized loan obligation (CLO) equity and related investments for third-party institutional investors. In addition, under its Nassau CorAmerica brand, Nassau Re will expand its existing real estate commercial whole loan capabilities to include floating rate debt investments. Nassau Re is also expanding its alternative investments practice to grow its private equity investing and co-investment platforms.
Nassau Re announced that Bruce C. Brittain and Russell C. Pemberton are joining the company and will both serve as Managing Directors and Lead Portfolio Managers for NPC. Mr. Brittain was most recently a Co-founder and Principal of Morningside Credit Partners. Mr. Pemberton was most recently Head of CLO Syndicate and Origination at RBC Capital Markets.
“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. 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,” said Phillip J. Gass, Chief Executive Officer of Nassau Re. “Additionally, 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.”
Nassau Private Credit LLC
NPC will source and invest in equity and debt tranches of CLOs for both Nassau Re affiliates and third-party institutional investors. NPC’s capabilities will complement Nassau Re’s existing CLO management business, Nassau Corporate Credit LLC, which is led by Alex Jackson, has closed four CLOs since its 2017 formation, and has approximately $2.1 billion in assets under management.1
Bruce Brittain has extensive securitization and structured funding experience, including over 14 years of experience in structured credit products with various roles in structuring, solutions, syndication, trading and analytics. He was most recently a Co-founder and Principal of Morningside Credit Partners, and prior to that, was a Managing Director at South Street Securities where he developed non-bank financing alternatives for CLOs, portfolios of bank loans and other credit assets. Mr. Brittain 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. Mr. Brittain earned a BSc in Mathematics from the University of Chicago and an MBA from Columbia University.
Russell Pemberton has been at the forefront of the CLO asset class for over 15 years with experience in asset selection as a CLO issuer, structuring, trading, origination and syndication. He recently joined Nassau Re from RBC Capital Markets, LLC, where he oversaw the entire new issue CLO platform. Prior to joining RBC, he held roles at RBS Securities Inc., which included Head of CLO Origination, Head of CLO Structuring and roles on the CLO secondary trading desk. Mr. Pemberton also held senior positions within several CLO departments at JPMorgan Securities Inc. and Bear, Stearns & Co. Inc. He earned a BS in Analytical Finance from Wake Forest University.
Additional Specialty Finance Asset Classes
Through Nassau CorAmerica LLC, Nassau Re will expand its real estate related investment products to include short-term commercial floating rate mortgage bridge loans for acquisitions as well as repositioning and leasing of existing real estate assets. Nassau CorAmerica is a diversified real estate investment and asset management firm that provides clients with access to a range of investment opportunities including core, core plus, value add and structured debt and equity alternatives with an emphasis on public and private commercial real estate debt. Led by William Petak since its 2009 formation, Nassau CorAmerica has approximately $1.9 billion in assets under management.2
Additionally, Nassau Re’s alternatives team will expand its capabilities to include managing alternatives for third-party institutional clients through structured offerings or separately managed accounts. Nassau Re has been an investor in alternative investments for over 30 years, and its portfolio includes investments in private equity, venture capital and mezzanine funds. The portfolio also holds direct investments in private equity and mezzanine debt. The new strategies will be managed by Paul M. Chute, Senior Group Managing Director, who has been managing the company’s private placement investing since 2003 and alternative investments since 1994.
About Nassau Re
Nassau Re’s mission is to build a franchise across the insurance value chain. Based in Hartford, CT, Nassau Re currently has combined assets of approximately $20 billion and capital of approximately $1.3 billion. Our business covers four segments: insurance, reinsurance, distribution and asset management through various affiliates including Nassau Life and Annuity Company, Constitution Life Insurance Company, Saybrus Partners, Nassau Asset Management Company, Nassau CorAmerica and Nassau Corporate Credit.
Nassau Re was founded in 2015 with capital provided by Golden Gate Capital, a private investment firm with over $15 billion of committed capital. For more information, visit www.nsre.com.
1Assets under management as of February 1, 2019 equaled the sum of (i) the aggregate face amount of collateral assets owned by CLOs, (ii) the face amount of collateral assets in warehouse facilities (if any), and (iii) cash available to warehouse facilities (if any). Please note that regulatory assets under management (as reported on Nassau Corporate Credit LLC’s Form ADV) may be calculated differently.
2 Assets under management as of December 31, 2018 equaled the sum of (i) invested capital, (ii) cash to be invested and (iii) accrued interest. Please note that regulatory assets under management (as reported on Nassau CorAmerica LLC’s Form ADV) may be calculated differently.