Bermuda-based Convex raises another $500m
Commercial re/insurer Convex Group Ltd has ramped up its total committed capital to $3.2 billion after a $500 million investment from US investment firm Sixth Street.
The Bermudian company, launched in April 2019 by industry veterans Stephen Catlin and Paul Brand with $1.7 billion of initial committed capital, raised a further $1 billion in a capital raise last year.
The latest $500 million investment comes in the form of preferred equity capital from Sixth Street, meaning the investor will be paid a periodic coupon.
Mr Catlin, chief executive officer of Convex, said: “We are pleased to be partnering with the Sixth Street team to strengthen our position even further in today’s cyclically advantageous market environment.
“This significant additional capital provides us with greater flexibility as we continue our recent momentum in growing our business.”
Sixth Street, which has about $50 billion of assets under management, had previously invested in Convex’s equity. Other shareholders include GIC, Singapore’s sovereign wealth fund, and Onex, a Canadian private-equity group.
Convex underwrites insurance and reinsurance across a diverse range of business lines including aerospace, casualty, energy, marine, property and other lines of business.
Sixth Street’s investment add to the billions of dollars pumped into the Bermuda insurance market last year, raised by incumbents as well as start-ups, as insurers seek to raise capacity to take advantage of rising insurance rates.
A. Michael Muscolino, cofounder and partner of Sixth Street, said: "With an exceptional track record and disciplined team of underwriters, Convex is uniquely positioned to pursue opportunities made available by a hardening market.
“Our cross-border financials investing franchise is pleased to be supporting Convex management alongside their impressive existing institutional investor base, and we look forward to our long-term partnership.”
JP Morgan and Evercore acted as financial advisers and Slaughter and May and Appleby acted as legal advisers to Convex. Goldman Sachs acted as financial adviser and Willkie Farr & Gallagher LLP and Conyers acted as legal advisers to Sixth Street.