(Bloomberg) — Brookfield Wealth Solutions is looking to offload a private credit portfolio worth around $1.5 billion from the balance sheet of American National, an insurance company it acquired in 2022, according to people with knowledge of the matter.
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The firm has enlisted Jefferies Financial Group Inc. to find buyers for the list of so-called limited partner stakes, said the people, who asked not to be named because the discussions are private About $1.2 billion of the portfolio is in private credit, including about $1 billion in senior loans and $200 million in opportunistic credit, which sits lower in the capital structure, they said.
Representatives for Brookfield and Jefferies declined to comment.
Brookfield’s approach shows the market for secondhand fund stakes is gaining acceptance as an avenue to shed increasingly large positions. The Florida State Board of Administration is seeking bidders on the secondary market for a bundle of private credit stakes worth as much as $4 billion, Bloomberg previously reported.
The assets that reach secondary markets are often sold at discounted prices. The American National opportunistic credit portfolio may fetch bids for around 90 cents on the dollar, according to the people. Bids for the senior-ranking debt may come in above that, one of them said.
Brookfield Wealth Solutions, previously known as Brookfield Reinsurance, acquired American National in 2022 in a transaction valued at around $5.1 billion. The portfolio is part of the unit’s legacy assets and any sale will be dependent on price, another of the people said.
Coller Capital, Ares Management Corp., Pantheon Ventures and Tikehau Capital SCA are among firms with pools of capital dedicated to buying credit fund stakes in the secondary market.
Mark Carney, chair of Brookfield Asset Management, is also chair of Bloomberg Inc.
(Updates with more detail on the portfolio in second and sixth paragraphs.)
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