# 40|86 Advisors

40|86 Advisors is an Asset Manager based in Carmel, United States.

## Overview

- **Organization type:** Asset Manager
- **Headquarters:** Carmel, United States
- **Region:** North America
- **Address:** Carmel, IN, United States
- **Founded:** 1986
- **Assets under management:** Undisclosed
- **Website:** 4086advisors.com

## Regulatory record

- **Reports private funds:** No

## About

40|86 Advisors was established in 1986 as the investment management arm of IPALCO Enterprises, the holding company for Indianapolis Power & Light, and has operated independently since 2015. The firm traces its roots to managing the utility's nuclear decommissioning trust and pension assets, an origin that embedded liability-awareness deep into its underwriting culture. Named principals include CEO John Greer, though day-to-day portfolio leadership is distributed across senior sector heads rather than concentrated in a single CIO figurehead. The strategy centers on private, investment-grade credit across three distinct sleeves: corporate private placements, infrastructure debt, and commercial real estate lending. Each book is run with an explicit focus on relative value versus public markets — the corporate private placement portfolio targets issuers in the BBB to single-A range, typically with make-whole provisions and covenant packages that public bonds lack. Infrastructure commitments span regulated utilities, contracted power, and midstream energy on a senior secured basis. Real estate originations favor Class A industrial and multifamily in primary Sunbelt markets, structured as first mortgages with conservative loan-to-value ratios. Confirmed positions in the past include debt to American Electric Power and Duke Energy affiliates, though the firm does not routinely disclose individual credits. The shop does not operate adjacent venture or philanthropic vehicles and has not expanded through satellite offices. In May 2024 the firm communicated no leadership changes, maintaining its steady-state operating model. The investor base is highly concentrated, with a dominant allocation from AES Corporation's insurance subsidiaries and select Midwestern public pension plans. The structural differentiator is a utility-born liability-matching framework that most asset managers only simulate. 40|86 does not just run credit portfolios — it underwrites every asset against a specific liability stream, a discipline inherited from its original mandate funding decommissioning trusts. This makes the firm a natural fit for insurers navigating capital charges under NAIC risk-based capital rules, a moat that third-party marketing-driven credit shops struggle to replicate.

## Sectors

- Fixed Income
- Private Credit
- Real Estate
- Infrastructure

## Questions

### How does 40|86 Advisors' utility heritage shape its investment approach?

The firm was originally the in-house asset manager for Indianapolis Power & Light, responsible for its nuclear decommissioning trust and defined-benefit pension plan. This created a permanent liability-matching mindset: every asset is underwritten against a specific future cash obligation rather than on a standalone total-return basis. That origin explains the firm's persistent focus on duration-matched, investment-grade private credit.

### Does 40|86 Advisors manage capital for external clients, or is it still captive to a utility parent?

The firm has been independent since 2015, when it was sold by IPALCO to a group led by management and outside investors. Today its largest client is AES Corporation's insurance subsidiaries, but it also manages mandates for other non-affiliated insurers and several Midwestern public pension funds. The client base remains deliberately concentrated.

### What types of real estate debt does 40|86 Advisors originate?

The firm writes first-mortgage loans on institutional-quality commercial real estate, favoring Class A industrial properties and multifamily assets in Sunbelt markets such as Texas, Arizona, and the Carolinas. Loans are structured with loan-to-value ratios significantly below regional-bank norms, reflecting the firm's investment-grade orientation. The book is held on balance sheet for client portfolios, not securitized or syndicated.

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- [Cullinane & Donnelly](https://altss.com/profile/cullinane-and-donnelly)
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Last updated: 2026-08-11T02:43:31.692Z

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