Aquarian Holdings is close to finalizing a $4 billion deal to buy Brighthouse Financial, the U.S. life insurer that was spun off from MetLife. This move highlights the growing role of private capital in the insurance industry.
People familiar with the discussions say Aquarian, which is backed by Mubadala Capital from Abu Dhabi, plans to offer up to $70 per share for Brighthouse. That price is a big premium over Brighthouse’s recent stock value. While the deal could be confirmed soon, sources warn that talks are still ongoing and not guaranteed.
Aquarian is led by Rudy Sahay, who used to work at Guggenheim Partners. The company is known for putting insurance money into areas like private credit, structured debt, and real estate. Buying Brighthouse would be a huge step for Aquarian, increasing its assets several times and making it one of the biggest firms tied to private equity in insurance.
Brighthouse manages around $120 billion in assets but has faced challenges as an independent company. Its variable annuity business requires a lot of capital. Under Aquarian’s leadership, it’s expected that Brighthouse will shift its investments towards private debt and other alternative options that offer better returns than traditional bonds.
Goldman Sachs has been advising Brighthouse during the sale process. At first, big investment groups like Apollo, TPG, Sixth Street, and Carlyle showed interest. However, many dropped out after looking at Brighthouse’s finances or because they couldn’t match Aquarian’s bid.
Mubadala Capital is likely to provide a big part of the equity, while banks are arranging over $1 billion in debt to help complete the purchase. Mubadala has been actively investing in insurance-related platforms, having committed $1.5 billion to Aquarian last year.
This deal fits with recent trends where private capital firms are acquiring life insurance companies in the U.S. to gain stable, long-term funds and move them into higher-yield private markets. Similar recent acquisitions include American Equity Life, Global Atlantic, and Talcott Resolution.
Neither Aquarian, Brighthouse, nor Mubadala Capital have commented publicly about the deal. If everything goes through, this deal could mark a significant shift in the life insurance space.