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APOIn depth · 4/5Save idea

Co-investment alignment changes the client risk dialogue

The guest argued that managing a large captive insurance balance sheet alongside third-party capital shifts the relationship from selling products to co-investing.

The argument

By investing their own balance sheet capital as the largest investor in their own products, the firm aligns its interests with clients and avoids raising money for asset classes that do not offer attractive risk-adjusted returns.

The thesis, stress-tested
✓ What validates it
  • Stronger third-party capital inflows due to alignment of interest
▸ Risks discussed
  • Balance sheet exposure to underwriting losses if co-investments underperform
Hear it yourself
"Today, we are the undisputed leader in being able to provide that, not just our own insurance balance sheet, but to other insurance clients, to other third party credit investors who now have seen this as a really attractive, less correlated credit class."
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APO: Co-investment alignment changes the client risk dialogue · Zortix