Skadden is advising Jackson Financial Inc. on its long-term strategic investment and partnership with TPG Inc., as well as the establishment of Jackson’s new Michigan-based captive reinsurer, Hickory Brooke Reinsurance Company (Hickory Re). The TPG transaction includes a $500 million common equity investment by TPG, representing approximately a 6.5% stake in Jackson, as well as the issuance of $150 million in TPG common stock to a Jackson subsidiary.
As part of the partnership, Jackson and TPG have agreed to a nonexclusive investment management arrangement with an initial 10-year term, under which TPG will complement the asset management services of PPM America, Inc., a Jackson subsidiary. The capital from TPG’s investment in Jackson, together with $150 million in excess cash from Jackson, will be used for the initial capitalization of Hickory Re, established to serve as a capital-efficient way to accelerate further sales growth of Jackson’s fixed and fixed index annuity products.
The Skadden team includes Elena Coyle, Patrick Lewis, Heather Cruz and Laura Kaufmann.