In contrast to today's trend of asset managers looking at insurance companies as a source of capital, Man Varagon was created in 2014 with the goal of serving the investment needs of insurance companies. This somewhat sets apart the asset manager in the insurance space.

In 10 years, the asset manager grew, now managing $11bn in insurance assets across multiple clients and structures.

Since inception, Man Varagon's expertise has been focused on lending directly to sponsor-backed companies in the core middle market where its value-add to insurance partners is in generating attractive returns with lower risk, consistent alpha, and reliable income. It has generated compelling and consistent returns since inception, much of it over low- or zero interest rates. Furthermore, the net loss since inception of 0.03%p.a. provides return pick-up while limiting risk exposure.

Although its investment philosophy and focus has been consistent since its inception, Man Varagon is not 'stuck in its ways', and is constantly looking for ways to innovate. One of the latest evolutions of its portfolio management approach is the benchmark analysis, which compares key credit metrics of borrowers such as revenue, EBITDA, interest coverage, PIK exposure, and performance relative to rating bucket versus the middle market universe.

"This analysis solves the widespread issue in private credit, which is the use of backward-looking information such as default and losses, to measure performance. We believe that a proactive approach is necessary to stay ahead of the game, and that this analysis showcases our commitment to innovation," the manager said.