Life insurer and employee benefits provider Guardian Life Insurance Company of America (Guardian) has joined forces with Hamilton Lane, appointing the private markets firm to oversee its existing private equity holdings and facilitate further investment in the sector. 

Hamilton Lane will assume management of Guardian’s private equity portfolio, valued at nearly $5bn.  

In addition, Guardian has pledged to invest around $500m annually in private equity for the next decade, with Hamilton Lane responsible for deploying these funds.  

As part of the arrangement, Guardian will provide $250m in initial capital dedicated to new evergreen initiatives aimed at expanding investment opportunities within Hamilton Lane’s Global Evergreen Platform.  

Through this collaboration, Guardian’s general account is expected to gain exposure to private equity investments including primary, co-investment and secondary transactions. 

The agreement also includes equity warrants and additional financial provisions for Guardian. 

Hamilton Lane co-CEO Erik Hirsch said: “We are excited to announce this strategic and innovative partnership with Guardian, a firm that embodies our values of putting our clients’ needs first and long-term commitment to delivering high-quality solutions to those we serve.  

“This partnership is a testament to the strength of our Insurance Solutions platform and the trust we have built with leading institutional investors.” 

In recent years, alternative asset managers and life insurers have grown closer – sometimes through ownership, as when Apollo Global Management acquired Athene, and sometimes via strategic partnerships like the one between Hamilton Lane and Guardian Life – reported Bloomberg. 

These arrangements give insurers access to new origination channels and higher-yielding investments, while managers gain a steady, long-term source of capital and fee income. 

Meanwhile, Hamilton Lane will work alongside Park Avenue Securities (PAS), Guardian’s registered broker-dealer and investment adviser. 

The intention is to develop investment solutions and provide educational support for the more than 2,400 advisors managing approximately $58.5bn in assets through PAS. 

The transaction is expected to close by the end of 2025.  

Following the closing, Guardian’s private equity investment team is set to move across to Hamilton Lane. 

Guardian chairman and CEO Andrew McMahon stated: “We have been deliberate in building partnerships that align with our purpose and deliver meaningful value to our policyholders.  

“Partnering with Hamilton Lane allows us to enhance our investment and wealth management capabilities while supporting the financial well-being of our customers and policyholders through innovative, long-term strategies.” 

Earlier this year, Guardian Life divided its Individual Markets segment into two separate divisions: Financial Protection & Retirement Solutions and Client Solutions & Wealth Management.