Full stack AI infrastructure may soon be an investable asset class and private equity underwriters (PEU) aim to play a big role. Apollo, Blackstone and KKR will join Brookfield, Goldman Sachs and BlackRock to fund the data center build out.
KKR may stuff that data center financing into its insurance affiliate, Global Atlantic Financial Group.
References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries.Global Atlantic Financial Group's products are shown on their website. They include annuities and pension risk transfer products.
Insurance products are state regulated and many states have "guaranty associations" which cover failed products up to a certain limit. For most states annuities are covered to $250,000, although a few go as high as $500,000.
As for Global Atlantic the fine print on their website states:
Guarantees provided are subject to the financial strength of the issuing insurance company; not guaranteed by any bank or the FDIC.
This information is written in connection with the promotion or marketing of the matter(s) addressed in this material. The information cannot be used or relied upon for the purpose of avoiding IRS penalties. These materials are not intended to provide tax, accounting or legal advice. As with all matters of a tax or legal nature, you should consult your tax or legal counsel for advice.
Life insurance products are issued by and all policy benefits are the responsibility of Accordia Life and Annuity Company, 215 10th Street, Des Moines, Iowa. Accordia Life is subsidiary of Global Atlantic Financial Group Limited.
Annuities are issued by Forethought Life Insurance Company, 10 West Market Street, Suite 2300, Indianapolis, Indiana. Variable annuities are underwritten and distributed by Global Atlantic Distributors, LLC.Packaging data center debt could produce regularly recurring PEU fees.
Significant, dedicated pools of capital at attractive rates is the promise to data centers that use NVIDIA chips. What's the promise to investors, especially those unaware that data center infrastructure debt is backstopping their insurance product?
FDIC bank limits are fairly well known. State Guaranty limits may need to be as well.
The boys that helped break the financial system in 2008 and front and center in 2026. I would not put it past them to do it again.
As for anyone truly protecting the little person, they went AWOL decades ago. It happened as politicians Red & Blue loved PEU and their new TechGod brethren. Increasingly, more are one and they know how to further their interests. Yours? Not so much.
