"We don't have to invest in privates"—When does a CIO managing $11 billion say no to alternative investments?
In our 16th episode of our Private Markets Series, Joe Eppers (CIO) and Vaib Kalia (Head of Fixed Income) from Selective Insurance explain how P&C insurance companies benefit from private market investing. The key advantages include diversification, the ability to capture liquidity premiums from steady cash flows, and higher yields than public markets. They discuss how the private markets have evolved dramatically over the past decade through securitization technology, creating "rated feeders" that allow investors to choose their position in the capital stack—from senior AAA tranches to equity—in bond-like formats rather than traditional illiquid LP structures. Their investment process focuses on three pillars: manager selection, collateral evaluation, and rigorous structure analysis with particular emphasis on covenant strength, LTV tests, and stress testing. They invest across direct lending, asset-backed finance (equipment leases, music royalties), and private equity, evaluating opportunities based on excess spread over comparable public market alternatives.

The conversation also covers performance measurement challenges in opaque markets, governance, and stakeholder management built on transparency over 10+ years, and their views on the democratization of alternatives in 401(k) plans.
Joe Eppers is the Chief Investment Officer of Selective Insurance, where he oversees more than $11 billion in general account assets and over $1 billion in retirement assets across defined benefit and defined contribution plans. With over 25 years of investment experience, Joe has spent the past decade as CIO building a diversified, high-performing investment platform that blends disciplined risk management, strong governance, and a thoughtful expansion into private markets designed to enhance yield and diversify risk while aligning with the capital efficiency, liquidity, and return objectives of a P&C insurer. Before joining Selective, Joe was a Director at BlackRock in the Financial Institutions Group, where he focused on cultivating client relationships and delivering customized strategic investment solutions to insurance clients and prospects. He previously served as Senior Vice President at Endurance Specialty Holdings, where he held numerous roles involving asset allocation, manager selection and oversight, and risk management for the company’s global reinsurance platform. Joe earned his BS in Economics from Purdue University and MBA in Finance from Butler University, and is a Chartered Financial Analyst (CFA) Charterholder.

Vaibhav Kalia is an insurance investment professional specializing in fixed income portfolio management, risk analysis, and asset allocation. Currently serving as SVP, Head of Fixed Income at Selective Insurance, Vaib has oversight over the firm's general account & retirement assets totaling ~$12B, directing investment strategy, sourcing public and private fixed income investments and managing external manager mandates. Previously at Blackrock, Vaib was a VP within RQA responsible for risk management of multi-sector fixed income funds totaling ~$40 billion. He also spent 4 years at HSBC Bank in different roles within Structured products as a trader, structurer and risk manager. He graduated with M.S. in Financial Engineering from Columbia University, MBA in Finance from IIM Calcutta, and B. Tech. in Electrical Engineering from IIT Delhi.
In This Episode:
(00:00) Joe Eppers and Vaib Kalia from Selective Insurance

(04:41) Core benefits of private market investing for P&C insurance companies

(07:45) Evolution of private markets through securitization and rated feeders

(15:44) Investment decision-making process: manager, collateral, and structure analysis

(21:27) Performance measurement challenges and benchmarking opaque private investments

(28:07) Democratization of alternatives in 401k plans and potential consequences

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Dr. Angelo Calvello is a serial innovator and co-founder of multiple investment firms, including Rosetta Analytics and Blue Diamond Asset Management. He leverages his extensive professional network and reputation for authentic thought leadership to curate conversations with genuinely innovative allocators.

As the "Dissident" columnist for Institutional Investor and former "Doctor Is In" columnist for Chief Investment Officer (winner of the 2016 Jesse H. Neal Award), Calvello has become a leading voice challenging conventional investment wisdom.

Beyond his professional pursuits, Calvello serves as Chairman of the Maryland State Retirement and Pension System's Climate Advisory Panel, Chairman of the Board of Outreach with Lacrosse and Schools (OWLS Lacrosse), a nonprofit organization creating opportunities for at-risk youths in Chicago, and trustee for a Chicago-area police pension fund. His career-long focus on leveraging innovation to deliver superior client outcomes makes him the ideal host for cutting-edge institutional investing conversations.

Resources:
Joseph Eppers LinkedIn: https://www.linkedin.com/in/joseph-eppers-cfa-2794921/
Vaib Kalia LinkedIn: https://www.linkedin.com/in/vaibhavkalia/
Email Angelo: [email protected]
Email Julie: [email protected]
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