Pillar Capital Management, a Bermudian-based asset manager specialising in insurance-linked securities, has attracted an investment from SageSure, a managing general underwriter with a focus on the property catastrophe reinsurance market.

SageSure said the strategic investment adds Pillar’s reinsurance risk underwriting capabilities and institutional investor relationships to the SageSure platform, strengthening Sagesure’s ability to connect underwriting expertise with a broader range of capital sources.

Pillar will continue to operate as an independent franchise and will retain its current team in Bermuda and its investment strategy. Pillar will continue to be led by Stephen Velotti, the longtime chief executive officer and chief investment officer, and Tara Railton, the chief operating officer.

Pillar’s management team will continue to hold a substantial ownership stake in the business, which has more than $4 billion of institutional assets under management.

“For nearly two decades, Pillar has built a world-class platform and deep relationships with global institutional investors through a relentless focus on strong technical underwriting and prudent risk management, two principles which are core to our ethos at SageSure,” said Terrence McLean, president and CEO of SageSure. “For those reasons, I believe the two organisations could not be a better fit as partners.”

Mr Velotti said: “We are excited to embark on this next chapter with SageSure. While our core strategy, our team, and the way we serve our investor partners will remain unchanged, partnership with SageSure will further enhance our ability to access, evaluate, and manage catastrophe risk and allow us to continue delivering industry-leading results.”

SageSure’s existing debt facility with longstanding capital partner Ares Management was expanded to support the investment.

Howden Capital Markets & Advisory served as exclusive financial adviser to SageSure on the transaction, and Evercore served as exclusive financial adviser to Pillar. Willkie Farr & Gallagher LLP and Appleby served as SageSure’s legal counsel.