A Bermuda fund administrator has passed the $3 billion mark in assets under administration after only three years in business.

ILS Fund Services — which provides fund administration and valuation services to funds that invest in insurance linked securities (ILS) — now provides services to 27 separate ILS funds.

The firm’s co-founder and director Brian Desmond said: “We are extremely proud of this achievement and very thankful to our clients that have supported and grown with us since we opened our doors for business in early 2012.

And Mr Desmond predicted: “It’s been a busy and exciting time in the ILS space the last few years and we see this trend continuing for the foreseeable future.”

He added: “Our growth in assets reflects the success of our clients and our deep commitment to providing exceptional service and also proves that the model we set up, a fund administrator with a deep understanding of reinsurance transactions and valuation, works and is considered huge added value and cutting edge by ILS fund managers and investors alike.”

The firm said it had capitalised on the emergence of Bermuda as a leader in the ILS market — bolstered by strong regulation and established insurance and reinsurance and capital markets industries.

It added that all its clients were Bermuda-based investors in ILS areas like catastrophe bonds, industry loss warranties (ILW) and sidecars.

Andre Perez, also a co-founder and director of ILS Fund Services said: “We are delighted this initiative has been so successful in such a short period of time and that our clients appreciate the level of service that we can provide them from both a fund administration and valuation perspective.”

He added: “Having a thorough understanding of the ILS market and the specific fund-related needs has certainly enabled us to provide value to each of our client relationships and given ILS Fund Services the ability to shape best practices for fund administration for this investment strategy.”

ILS Fund Services was formed as a joint venture between the Horseshoe Group and IKONIC Fund Services.

Horseshoe is the largest independent insurance manager dedicated to the ILS sector and offers management and advisory services to a range of areas, including insurers and reinsurers, hedge funds and private equity firms, Lloyd’s of London affiliates and investment banks.

The firm has offices in Bermuda, the Cayman Islands, Gibraltar and Ireland.

Bermuda-based IKONIC was licenced as a fund administrator in 2007 and provides fund administration expertise to alternative investment funds and has other offices in North Carolina and the Caymans.