Sixth Street just inked its second insurance deal of 2021, showcasing private equity's gold rush into the space

Pete Sannizzaro, CEO of Talcott
Sixth Street




Sixth Street has agreed to buy insurance company Talcott Resolution for $2 billion, the latest deal in a private-equity gold rush in the insurance sector.




The acquisition fits within Sixth Street's "Tao" platform, which serves as an all-purpose investment vehicle to deploy capital in various forms.




The deal is expected to close in the second quarter.




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Investment firm Sixth Street Partners has agreed to buy the insurance company Talcott Resolution for $2 billion, the latest sign that the private-equity industry is licking its chops at the long-term, steady returns offered by annuities and life insurance policies.The asset class offers lower returns than traditional private-equity buyouts. But with more than $1 trillion in dry powder across the PE industry, according to PitchBook, investors have turned to deploying capital in many forms, and the insurance sector is becoming a well-trodden hunting ground. Sixth Street has raised as much as $25 billion in its Tao platform, a unit that serves to meet investor demand for deals that don't necessarily fit the typical takeover model: its funds back minority investments, direct lending, infrastructure, renewable energy and special situations, though it could also engage in large-scale leveraged buyouts if it pleases. Read more: KKR is making a big push into the $30 trillion insurance industry - here's why private equity is starting to look more and more like Berkshire Hathaway