MetLife Pitches $1bn Sale of Private-Equity Assets

Insurance provider MetLife Inc. aims to unload about $1bn in assets from its private-equity holdings through a secondary sale to lighten its balance sheet, according to people familiar with the matter.

The New York insurer is creating a special-purpose vehicle to hold the assets it plans to sell, two people familiar with the process said. MetLife would continue to manage the investments on behalf of the buyers, the people said.

This week, MetLife Investment Management (MIM), the institutional asset management business of MetLife, also announced that it has placed long-term, first mortgage loans secured by approximately 832,000 acres of timberland and timber across the Southeastern United States. The financing allows Tamarack Timberlands LLC, which is owned by Ontario Teachers’ Pension Plan and whose assets are managed by Resource Management Service, LLC, to complete a $625 million redemption transaction and assume direct ownership of its timberland assets in the U.S. South.

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“This milestone transaction is the result of working closely with the borrower to align long-term operational goals with long-term financing needs,” said Robert Merck, Global Head of Real Estate and Agriculture at MetLife Investment Management. “The deal highlights MetLife Investment Management’s commitment to financing borrowers who sustainably provide lumber and agricultural products.”

All forest assets in the transaction are third-party certified to the Sustainable Forestry Initiative’s (SFI) forest management standards. As a result, the financial returns are complementary to Environmental, Social, and Corporate Governance (ESG) outcomes. The approach supports the protection of biodiversity, water and soil resources while contributing to climate change mitigation.

MIM’s Agricultural Strategies Group includes a team of loan officers with an average of 16 years’ experience in agricultural, agribusiness and timberland financing. The unit has regional offices in Germantown, Tenn., Overland Park, Kan. and Fresno, Calif.

“This transaction reflects MetLife Investment Management’s commitment to investing in assets that produce sustainable returns – both environmentally and economically,” said Greg Gallaway, Managing Director and head of the Agricultural Strategies group at MetLife Investment Management.

Source: Yahoo Finance

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