908-679-5011
Janus Henderson to Manage $45 Billion Guardian Life Assets
Janus Henderson has entered into a major partnership with Guardian Life, giving the investment firm a larger role in managing insurance assets. As part of the deal, Janus Henderson will manage $45 billion of Guardian Life’s bond portfolio. Guardian Life will also invest up to $400 million to support new projects at Janus Henderson, including credit products. In return, Guardian Life will receive warrants that allow it to buy Janus Henderson stock at a set price.
The deal is expected to strengthen Janus Henderson, which was formed in 2017 through a merger of two firms that had struggled as investors moved toward low-cost index funds. Under CEO Ali Dibadj, the company has started to recover by expanding into bonds and private-market investments, and by working more with large institutions such as insurance companies.
Shares of Janus Henderson fell 0.7% on Tuesday and are down over 30% this year, part of a broader decline in financial stocks. After this deal closes later in the year, Janus Henderson’s fixed-income assets will grow to more than $147 billion—about one-third of its total assets. It will also manage $109 billion for insurance clients.
Based in London, Janus Henderson had around $379 billion in assets under management at the end of last year. As part of the partnership, Janus Henderson and Guardian Life plan to create “model portfolios” – ready-made investment strategies – for Guardian’s financial advisers. Guardian’s broker-dealer arm, Park Avenue Securities, includes more than 2,400 advisers who oversee about $58.5 billion in client assets.
Insurance companies often invest the money they collect from premiums, and more of them are now turning to outside firms to manage those funds. Guardian Life’s CEO said that partnering with firms like Janus Henderson helps both sides move faster and create value. Over a dozen members of Guardian’s investment team will be offered positions at Janus Henderson.
This move follows Guardian’s transfer of $30 billion in assets to HPS Investment Partners last August. HPS is a private-credit manager that invests in high-yield bonds, private loans, and real estate. Late last year, BlackRock agreed to buy HPS for about $12 billion.
Guardian will receive 1.6 million stock warrants as part of its deal with Janus Henderson, which is currently valued at about $4.7 billion.
The partnership will not change who owns Janus Henderson. Trian Fund Management, a major shareholder, remains invested. Dibadj said the deal aligns with Trian’s goal to help the firm grow and deliver better results for clients and partners.
Herold Law, P.A. is a full-service law firm located in Warren, New Jersey. To learn more about our legal services or to schedule an initial consultation, call 908-679-5011 or contact us online. We proudly serve clients in Somerville, Morristown, and across New Jersey.
