Hunter Hopcroft
speaker
537 appearances
1 recordings
1 series
first heard Mar 2025
last heard Mar 2025
Hunter Hopcroft’s voice in public audio — every appearance, attributed to the second.
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and drop new equity down.
But what's really genius is using this private equity structure.
So he's seeding these platforms, but he's raising outside capital for them as well.
And so all of these little origination platforms are getting basically private equity economics with fees and carry while they're feeding the insurance business on the other side.
Right.
So let's say it was all in house.
You would have your 90% of investment grade, and you'd have your 10% that drop down.
So basically, for every hundred dollars of insurance assets you bought, you would get $10 of equity to do your alternative manager strategies, to do LBOs or private credit or whatever you were doing.
But what Rowan's decided is he's going to take that $10 and he's going to see these platforms take that $10.
He's going to use
$5 to put into an origination platform and raise another $5 of outside capital.
And now that $5 is getting GP economics or sort of private equity structure on the returns and carry from that originator.
And so whereas
Something housed entirely on the balance sheet, you buy a hundred dollars of insurance asset, you get ten dollars of equity.
Rowan has figured out a way to buy $100 of insurance assets and basically turn it into more like thirty dollars of equity by running it through this private equity structure.
They get fees and carry on the origination platforms that he's seeding.
That's really honestly the tip of the iceberg because there's a whole other level of financial engineering that's going into these balance sheets to if we think of the traditional private equity structure.
LP capital is really a form of leverage in some sense.
It's equity, but it's leverage for the GP in the sense that they're participating disproportionately in the upside over these certain hurdles.
And so
Showing 321–340 of 537 · page 17 of 27
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