Surge of Insurance Capital Into Private Markets Boosts Hiring, Pay Deals
The surge of insurance capital into private markets is boosting hiring and pay deals in the sector despite recent jitters, with senior managing directors asking for pay packets of $2.5 million and above.
Those are some of the findings in the latest credit industry recruitment report from RCQ Associates, which said that mandates for professionals experienced in asset-backed financing jumped almost 60% in 2025 from a year earlier. For top staff with in-demand skills, the base salary and bonus packages are being supplemented by “significant” carried interest — a share in profits — RCQ said.
Hiring of such of experts is expected to further grow this year despite concerns over private credit’s exposure to industries that may be disrupted by advances in artificial intelligence. Insurers keen on higher-yielding investments with long maturities are still adding to the hundreds of billions of dollars they’ve already poured into private markets strategies run by firms including Apollo Global Management Inc., KKR & Co Inc., and Blackstone Inc.
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The recent increase in risk aversion hasn’t affected hiring processes “in the structured finance market as of yet,” said Greg McGinnigle, head of North America at RCQ Associates. Still, there’s increased demand for “individuals that can deal with workouts and restructuring of facilities in the event of defaults.”
Pacific Investment Management Co. recently raised more than $7 billion for an asset-based finance strategy, including its first funds designed exclusively for insurance companies and wealthy individuals, Bloomberg reported in December.
“RCQ expects the ABF talent market to remain tight given the continued high volumes of insurance capital flowing into the market,” the report said. The search for staff is heightened by the amounts of “dry powder” currently being held by the biggest firms — cash that’s been raised from investors but not yet deployed. Bloomberg Intelligence estimates that private credit firms are currently sitting on some $543 billion in unused funds.
Asset-based finance is one of the fastest-growing segments of private credit because investments are secured by pools of financial or contractual collateral. Insurers are keen on the class as it offers long-dated investments, often investment-grade, with predictable cash flows.
Private credit firms have also been channeling investments to insurers that they have set up or bought themselves, raising concern over the increasing complexity of the entanglement between the two industries. Earlier this month, Blue Owl Capital Inc. sold a $1.4 billion portfolio of loans to three pension funds and its own insurance asset manager.
Private credit has long been a growing portion of insurers’ portfolios, especially in North America, accounting for about one-third of total investments, the International Monetary Fund said in a report released in October. Most insurers’ exposure to private credit is classified as investment grade, as they frequently invest through senior portions of collateralized loan or fund obligations known as CLOs and CFOs, respectively.
In November, private credit firm Golub Capital sold a CLO which locks investors into the securities for longer than typical deals, helping insurers to match maturities with their liabilities. RCQ said it had seen a “significant up-tick” in issuance of CFOs, and an increase of more than 30% in clients seeking talent with structuring and product experience in the field.
Sell-Side Hiring
Structured finance hiring at investment banks is expected to see even greater demand for talent including those with experience financing digital infrastructure assets such as data centers, RCQ Associates said in the report. Banks are also reinforcing their teams with staff who have a background in providing leverage to private credit managers and credit opportunity funds.
A US-based senior managing director of desks originating or syndicating securitization products such as CLOs would receive annual compensation of more than $2.25 million, according to the report. Salaries for the highest ranking bankers in fund and private capital solutions desks are at more than $2 million.
In January, the headhunter firm conducted a survey of private credit industry professionals on whether they expected their team to grow over the next 12 months. From 1,320 responses, 56% expected a net-positive headcount growth in their teams, 30% said they see their teams remaining stable, while only 8% expected their team size to decline.
Photograph: New York City; photo credit: Michael Nagle/Bloomberg