Twelve Capital anchor investor in €50m insurance private debt deal

by Artemis on June 7, 2016

Insurance and reinsurance linked investment manager Twelve Capital has acted as anchor investor for a new EUR50m insurance private debt transaction, as the firm continues to provide its investors with access to insurance-linked returns across the balance-sheet.

Twelve Capital offers a range of insurance-linked investment strategies, from catastrophe bonds, to private ILS and collateralized reinsurance, insurance private debt and private equity, through which its investors can access the returns of the insurance and reinsurance market, across the full balance-sheet.

Today the firm has announced a new private debt deal, acting as anchor investors in a €50 million transaction with Solvenian insurance firm Adriatic Slovenica d.d., providing it with an efficient source of Solvency II compliant capital for a ten-year term.

Daniel Grieger, Managing Partner and Head of Private Debt at Twelve Capital Group, commented; “Private Debt transactions with high quality mid-sized insurers is appealing investment content for our investors looking for attractive yields with low duration. This is our first transaction in Slovenia and therefore adds further diversification to our Private Debt investment vehicles.”

Ulrich Beck, ED, who leads Twelve Capital’s sourcing of Private Debt transactions in Europe, added; “This transaction is a clear example that financing capacity provided by Twelve Capital Group supports insurance companies in their quest to strengthen and to create a more efficient capital base. There is substantial potential in the debt market for small- and mid-cap insurers. In addition, we are pleased to have been introduced to Adriatic Slovenica via Jefferies who, along with many other major intermediaries, work closely with us around our Private Debt investments.”

Twelve Capital Group acted as the anchor investor for the private debt transaction, with additional investors joining the deal.

On 24th May 2016 Adriatic Slovenia placed EUR 50m in notes, which mature in May 2026. The private debt notes comply with the requirements of the Solvency II directive and have been listed on the Irish Stock Exchange (on the GEM – Global Exchange Market).

The proceeds of the sale of the notes will be used by the insurer for strengthening its capital adequacy under Solvency II and for purchasing KD Funds, which is one of the steps towards the implementation of the long-term strategy of KD Group (the parent company of the insurer).

Jefferies acted as lead manager and sole book runner for the private debt note issuance.

With an insurance-linked securities (ILS) investing business and an insurance private debt investments business, as well as a strategy which blends the two and a newer private equity offering, Twelve Capital is offering access to returns across the reinsurance balance-sheet. This broadens options for insurance linked investors, providing multiple ways to access the returns of the re/insurance market, giving them access to more of the industry value chain than ILS alone perhaps can.

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