Northwestern Mutual and DWS Raise $500M for Private Equity Fund
The fund gives other institutional investors a chance to invest in the kinds of private equity that Northwestern Mutual puts in its own general account.
An investment management arm of Northwestern Mutual and DWS have raised $500 million for a private equity fund, Four Columns Junior Capital Fund VI.
Northwestern Mutual Capital and DWS announced the creation of the fund in October 2020. The fund gives other institutional investors a chance to invest in the kinds of private equity investments that Northwestern Mutual puts in its own general account, according to Northwestern Mutual.
The Milwaukee-based life and annuity issuer has $558 billion in assets.
What It Means
Some investment firms say that, in spite of all of the turmoil that occurred in the first quarter, they can still raise capital.
If this is the start of a good private equity dealmaking period, that could make the insurers backing your clients’ life insurance policies and annuity contracts willing to offer better benefits guarantees.
If Northwestern Mutual Capital and DWS are on the right track, this could also be the start of a good period for clients who refrained from putting all of their money under a mattress and have been open to accepting more risk.
Fund Details
DWS’s RREEF America real estate investment unit has included the fund in a regulatory filing and says that another DWS unit, DWS Distributors, is marketing the fund.
The minimum investment is $5 million.
The fund invests in companies that are meeting their performance goals and already have private equity backers. The fund has made 30 separate commitments since beginning its investment period, in 2022, and it expects to make a total of 75 to 100 commitments, according to Northwestern Mutual.
Northwestern Mutual’s headquarters in Milwaukee. Credit: Northwestern Mutual