Insurance Partners L.P. have $525 million to invest after their private placement closed earlier this month.

The funds will sponsor property/casualty and life insurance acquisitions primarily, but also recapitalisations and demutualisations.

The latter is the process whereby mutuals, which are owned by policy holders, convert into publicly-held companies.

Non-US investors will invest through the Bermuda fund, whereas US investors will invest through the domestic mirror fund in the US.

A second closing at the end of February is intended to bring in another $25 million.

Of the total raised, $200 million was contributed by Bermuda-based Centre Reinsurance Holdings Ltd.; Keystone Inc., the investment arm of Texas billionaire Mr. Robert M. Bass; and Chase Manhattan Corp.

Centre Re, a finite risk reinsurer, began operations in 1988, and operates through subsidiaries in Bermuda, New York, and Dublin.

It is wholly-owned by Zurich Insurance Company.

About 25 others also invested, including insurers, endowment funds, corporations and individuals, said to include certain prominent Bermuda companies.

The New York-based company formed to operate the fund, Insurance Partners Advisors, L.P. is managed by partners Mr. Robert Spass, Mr. Steven Gruber and Mr. Daniel Doctoroff.

Previously, Mr. Spass was chief executive officer of an insurance acquisition fund sponsored by Centre Re.

Mr. Spass said: "Insurance Partners will capitalise on a unique period of opportunity in the insurance industry.

"The industry is undergoing unprecedented financial regulatory and strategic changes due to changing capital requirements, catastrophes, and the collapse of the real estate market. "We expect there will be a wide variety of investment opportunities,'' said Mr. Spass.