New York Life Backs Ex-Zell companion in Estate Wager

New York Life Backs Ex-Zell companion in Estate Wager

By siliconindia   |   Monday, October 27, 2014

New York Life Insurance Co. is turning into a partner of billionaire Sam Zell's to make wagers on developing real estate market.  According to the statement on Wednesday, the insurer took a chance in Jaguar growth and plans to consign $ 100 million to the first fund at the firm which will invest in properties in emerging markets. Jaguar is led by Gary Garrabrant, a co founder of Equity International with Zell.

The largest U.S. life insurer, New York Life owned by policyholders is searching for ways to increase investment income as the Federal Reserve holds interest rates near record-low levels. Chief Investment Officer John Kim has been turning to managers who specialize in assets beyond stocks and bonds to strengthen his portfolio.

In the statement Kim stated that; “The deal will provide a differentiated set of alternative investment opportunities in today’s challenging investment environment to New York Life, we are contented to have a partner with the knowledge and insight to help us benefit from investment in emerging real estate market.”Usually, Life insurers invest in high-grade corporate debt to back future obligations to policyholders. New York Life manages about $550 billion as of Sept. 30.

After Garrabrant left the company, Zell of 73 took over Equity International as interim chief executive officer in 2012. The men co-founded Equity International in 1999 to wage on real estate in developing nations. According to Bloomberg Billionaires Index, Zell worth’s $5 billion and he established Equity Group Investments LLC, a Chicago-based private investment company that’s more than 40 years old.

Latin America : Last year, Gary Garrabrant had founded Jaguar with Thomas McDonald who is the former chief strategic officer of Equity International. Garrabrant said Latin America offers the greatest opportunities while he also may invest in Asia.

In Bloomberg interview on Wednesday, quoting constraints on lending and property rights, he said that; “I wouldn’t lead with China for many reasons that relate China’s complexity”. On the same day, Zachery Kouwe, a spokes person for jaguar at Dukas Public Relations said that “New York Life is taking a minority stake in Jaguar and refused to give details. Statement did not give the terms of New York Life’s investment in Jaguar”.

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