Insurers controlled by Mark Walter have been racing to divest outsized holdings of private credit loans linked to other parts of his investment portfolio, according to people familiar with their plans. The insurers could soon announce that they have been able to cut their holdings of affiliated assets. Rob Camacho, who joined Walter’s firm TWG Global from Blackstone two years ago, has approached investors to refinance some of the loans held by insurers Delaware Life and Clear Spring Life and Annuity, as part of a plan hatched with regulators. After several investors turned down the deals, Camacho has pursued a complex restructuring that could bring down affiliated assets by several billion dollars.

Delaware Life and Clear Spring reclassified more than $20bn in holdings amid an inquiry by US prosecutors examining whether private credit investments were tied to other parts of Walter’s empire. TWG previously told the FT it “is aware of and co-operating with the investigation”. The insurers have been racing to sell or restructure these assets ahead of potential credit rating cuts. On Wednesday, Walter’s holding company announced it planned to sell its investment in the NBA’s Los Angeles Lakers to Josh Kushner and former Disney chief Bob Iger for $12.5bn, exiting one of the most expensive sports bets in history in less than a year. The sale was expected to help raise cash to inject into the insurers.

Walter oversees a sprawling portfolio of sports, financial services and AI bets worth tens of billions of dollars. He is a founder of Guggenheim Partners with over $300bn in assets, and owns stakes in the Los Angeles Dodgers and Chelsea FC. Bloomberg reported that Walter has had talks with firms including Steven Cohen’s Point72 to raise capital, but the hedge fund passed on any transaction. “It was a quick and easy decision,” a person said.