Nassau Financial Forms $8.4B Specialty Credit Arm

Nassau Financial Group — a company that’s been active in the U.S. annuity market — is taking a higher-profile approach to investing in bonds and loans.

The Hartford, Connecticut-based company announced earlier this week that it has combined its own credit investment unit with a newly acquired firm, Angel Island Capital Management, to start Nassau Global Credit, a specialty credit firm with $8.4 billion in assets under management.

Nassau Financial Group as a whole has $24 billion in assets.

What It Means

Many European companies are now in a recession, and rating analysts are talking about the possibility that empty offices in the United States could lead to a wave of building owner defaults.

Nassau Financial’s effort to expand specialty credit operations is a sign that this could be the start of boom times for asset managers interested in investing in undervalued loans and bonds.

The History

Nassau Financial acquired Angel Island Capital from Golden Gate Capital in January.

Nassau’s own Nassau Corporate Credit arm had $4.8 billion in assets at the end of the first quarter.

Angel Island Capital was founded in 2008 and ended 2022 with $3.6 billion in assets under management.