Principal Financial Stock Price, News & Analysis

Principal Asset Management has launched the Principal Private Credit Fund I, targeting lower and core middle market loans with over 90% exposure to private credit. This fund aims to provide enhanced yield and return potential through a disciplined credit investment process. Direct lending, which offers a yield premium and floating rate structure, has become attractive due to its strong performance in higher interest rate environments. The fund targets senior secured first lien loans with reasonable leverage levels and financial covenants. Principal Alternative Credit, the fund's management team, consists of over 30 experienced professionals and has surpassed $2 billion in borrower commitments as of December 31, 2023. This launch is designed to meet the needs of investors seeking income-driven returns and diversification.

Principal Financial Group has launched a 12-month immersive Apprentice Program aimed at recruiting individuals without a four-year degree. The program targets applicants from career readiness programs through community colleges, nonprofits, and organizations supporting military veterans. Apprentices will be hired for roles in operations, customer service, and sales administration at Principal's global headquarters in Des Moines, earning a full salary and benefits. This initiative aligns with Principal's commitment to expanding financial security and adapting to modern workforce trends. The program includes on-the-job training and peer group learning.

Principal Financial Group announced a definitive agreement to acquire Ascensus' employee stock ownership plan (ESOP) business. This acquisition will bring around 800 plans and over 165,000 participants to Principal's workplace savings and retirement solutions, solidifying its position as the top ESOP service provider in the U.S. The transaction, set to close by the end of Q2 2024, includes Ascensus' ESOP recordkeeping business, ESOP Economics consulting group, and Telescope™ software. Clients and employees will transition to Principal, benefiting from enhanced digital access, support tools, and audit process improvements. The acquisition aims to strengthen Principal's systems and capabilities, providing greater value and enhanced services to ESOP clients. The increased interest in ESOPs aligns with broader market trends, as the number of newly created ESOPs rose 39% from 2020 to 2021. Financial terms were not disclosed.

Principal Asset Management announced the launch of a new private infrastructure debt capability. This initiative aims to provide safety, stability, and enhanced returns for investors amidst constrained financing markets.

Mansi Patel, appointed as senior managing director and head of infrastructure debt, will lead the operations, growth, and strategy of this new venture. The new capability will invest in a diversified portfolio of private infrastructure debt focusing on globalization, decarbonization, and electrification.

This investment strategy promises higher risk premiums and lower default risk compared to public market sector equivalents. Patel will report to Todd Everett, global head of private markets at Principal Asset Management.

The Principal Financial Well-Being Index reveals businesses are poised for growth despite employee optimism lagging behind. The survey shows strong levels of growth and optimism among business owners and leaders, even in the face of high inflation. Businesses are looking to increase staff, invest in expansion, and upgrade infrastructure, signaling a positive economic outlook. However, employees are less positive about the economy, with only one-third feeling optimistic compared to two-thirds of employers.