A federal investigation into the business dealings of Mark Walter, co-owner of the Los Angeles Dodgers, is raising concerns about a Wall Street strategy that uses insurance capital to invest in private credit and alternative assets, according to sources familiar with the matter.
The probe, which has not been publicly detailed, focuses on Walter's financial empire, which includes Guggenheim Partners and its insurance affiliates. These entities have been active in the private credit market, a sector that has grown to over $1 trillion in assets under management globally.
Industry experts say the investigation could have ripple effects across the insurance-linked investment model, which has become increasingly popular among asset managers seeking higher returns. Regulators have been scrutinizing the use of insurance float to fund illiquid investments, citing potential risks to policyholders.
Neither Walter nor Guggenheim Partners have commented on the probe. The investigation is ongoing, and no charges have been filed.
