Liberty Mutual Backs New Credit Firm Targeting Untapped Market Deals

NEW YORK, NY – April 07, 2026 – Liberty Mutual Investments (LMI), the investment arm of the global insurer, has announced a significant long-term strategic partnership with Square Nine Capital, a newly formed private investment firm. The move signals a major push by the institutional giant into a highly specialized corner of the U.S. economy: providing bespoke credit solutions to middle-market companies navigating complex, event-driven situations often ignored by traditional lenders.

Under the partnership, LMI will anchor Square Nine, providing substantial capital and strategic support to fuel its growth. The collaboration is designed to leverage LMI’s vast resources with Square Nine's focused expertise in originating and structuring senior secured loans and other tailored capital solutions.

A Bet on Veteran Experience

At the heart of the new venture are its founders, Peter Ma and Nicole Musicco, two investment industry veterans with formidable track records. Their combined experience is a core element of the firm’s strategy and a key reason for the significant institutional backing from LMI and others.

Peter Ma, Co-Managing Partner, brings over 15 years of direct experience in originating, executing, and managing complex credit investments. His career includes a tenure as a Managing Director on Morgan Stanley’s Private Credit platform, where he was a member of the Investment Committee for several credit funds. Before that, he was a Partner at Colbeck Capital, a firm specializing in distressed credit and special situations, honing his skills in the very niche Square Nine now targets.

His partner, Nicole Musicco, has a distinguished background on the other side of the table, managing capital for some of the world's largest institutional investors. Most recently, she served as the Chief Investment Officer for the nearly $500 billion California Public Employees' Retirement System (CalPERS). Her extensive career also includes over 16 years in senior roles at the Ontario Teachers' Pension Plan (OTPP) and leading the private markets program at the Investment Management Corporation of Ontario (IMCO). This deep understanding of the institutional mindset and global private markets provides Square Nine with a unique strategic perspective.

Beyond Buyouts: A Focus on Complex Situations

Square Nine is deliberately carving out a niche beyond the crowded field of financing private equity-led leveraged buyouts (LBOs). The firm’s focus is on providing “solutions-oriented” capital to U.S. middle-market companies in “complex situations.” These scenarios can include founder-led businesses seeking capital for a major acquisition, companies undergoing operational turnarounds, or firms needing to refinance during periods of market dislocation when traditional bank lending tightens.

This segment of the market is often overlooked. As John Reichard, Head of Partnerships within Global Credit Markets at Liberty Mutual Investments, noted in the announcement, “This is a segment of the market that has long been underserved by traditional capital despite its resilience across market cycles.”

By offering highly tailored senior secured loans and structured capital, Square Nine aims to provide certainty and flexibility to companies that do not fit the rigid criteria of banks or the typical LBO-focused credit fund. The firm emphasizes a partnership approach, intending to provide not just capital but also strategic advice to help businesses navigate their challenges. This model is particularly valuable in an economic environment where flexibility and creative financing are paramount.

LMI’s Strategic Push into Alternative Credit

The partnership is a clear reflection of Liberty Mutual Investments' broader strategy. Managing over $124 billion in global capital, LMI has been actively diversifying its portfolio by seeking out specialized, high-growth opportunities in alternative assets. The firm's stated philosophy is to “build enduring businesses side-by-side with our partners,” a principle embodied in this anchor investment.

This deal is not an isolated event. It follows other significant moves by LMI into structured finance, such as its multi-billion dollar agreement to purchase consumer loans from fintech company Affirm and its backing of CenterNode Group, an alternative energy investment platform. These investments demonstrate LMI’s appetite for complex, partnership-driven opportunities that offer attractive risk-adjusted returns outside of public markets.

For Square Nine, the backing from LMI provides more than just capital. “LMI’s long-term approach, strategic perspective and alignment with our values make them an ideal partner,” stated Peter Ma and Nicole Musicco. This alignment is crucial for an emerging manager aiming to build a differentiated platform focused on long-term value creation rather than short-term gains.

A Foundation of Institutional Validation

While the Liberty Mutual Investments partnership is a landmark event for Square Nine, it was built upon an existing foundation of strong institutional support. The press release noted that the firm has also cultivated partnerships with accounts managed or advised by Aksia and GCM Grosvenor, two highly respected names in the alternative investment space.

Aksia is a leading global consultant that institutional investors rely on for rigorous due diligence on asset managers. Their involvement provides a powerful stamp of approval on Square Nine’s strategy and leadership. Similarly, GCM Grosvenor is a major global alternative asset manager renowned for its programs that identify, seed, and support promising emerging and diverse investment managers. Being part of the GCM Grosvenor ecosystem provides not only capital but also strategic guidance and access to a vast network.

This trifecta of support from LMI, Aksia, and GCM Grosvenor provides Square Nine with an exceptionally strong institutional launchpad. It validates the firm’s specialized approach and equips it with the capital, strategic resources, and credibility needed to compete effectively in the dynamic private credit landscape, ultimately creating a new and vital source of capital for the middle-market businesses that form the backbone of the U.S. economy.