Hildene Capital Management LLC, a credit-focused asset manager with approximately $12 billion of assets under management, and Silac Insurance Co., a U.S. annuity provider, have formed a strategic alliance.

As part of the alliance, Hildene has acquired a strategic minority ownership interest in the company. Additionally, Silac has entered into a $2.5 billion quota share agreement with Hildene affiliate Ludlow Re SPC Ltd., which aims to provide reinsurance for Silac’s annuity products. Hildene will also provide investment management oversight to $2 billion of Silac’s general account assets.

“Our alliance with SILAC underscores the confidence we have in the Company’s ongoing success and Hildene’s ability to source attractive investment opportunities for longer-term capital,” says Brett Jefferson, founder and co-chief investment officer of Hildene. “We look forward to a symbiotic relationship with SILAC for years to come as we continue to scale the Ludlow Re platform.”

Evercore Inc. and Kramer Levin Naftalis & Frankel LLP provided financial and legal advisory services, respectively, to Hildene. Goldman Sachs and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC provided financial and legal advisory services, respectively, to Silac.