The Carlyle Group will earn an additional $50 million a year for managing $50 billion for affiliate Fortitude Re.
Carlyle "will earn a recurring fee based on all of Fortitude Re's assets for assisting the reinsurer with acquisitions and identifying new growth opportunities."
Under the agreement, the fee Fortitude will pay Carlyle will be based on the reinsurer's overall profitability; other investors putting more money into Fortitude will also make a minority investment in the adviser entity that Carlyle is forming.
When your 96.5% owners (Carlyle and T&D Holdings) wants more fees what can you do? Comply.
Update 4-1-22: Fortitude Re bought $31 billion of in-force variable annuity account values from Prudential Annuities. Carlyle will be in your retirement. Pensions, IRAs and annuities. Oh my!
Update 2-4-26: An X post by Whitney Baker offered:
In case you’re curious where the losses are, the PE industry has been acquiring and then raiding the floats of c.10% of US life insurance assets. They’ve been filling them with private credit and direct lending, all using the same private ratings agency to misclassify the loans.
