Collateralized reinsurance investments start-up Sequant Re is looking to raise capital to back a portfolio of risks through online peer-to-peer financing exchange the OCMX.
It’s a novel way to approach capital raising, but with the OCMX having played host to a number of successful company capital raises it could be an interesting alternative for a new insurance-linked securities (ILS) manager to gain access to a potentially different class of sophisticated investor.
Collateralized reinsurance start-up underwriter and investments firm Sequant Re has been seeking investment capital while it has been building a team and strategy which aims to offer a more customised experience to investors seeking reinsurance linked returns.
The announcement of Sequant Re Holdings listing on the OCMX states; “To date, ILS has mainly been the domain of large institutional investors. It is Sequant Re’s aspiration to bring this powerful investment strategy to the investment community at large.”
So it’s clear that Sequant Re feels that the OCMX could help it to bring ILS and reinsurance linked investments to a broader investor base than just the large institutions the market consists of today.
The OCMX screens both companies that list on it and the investors financing them, which helps to ensure that investors are aware of the risks they are allocating capital to, vital for an ILS investment.
The Sequant Re management team wants to “build a cutting-edge reinsurance investment company with huge growth potential,” the company explains.
The OCMX has listed Sequant Re on its exchange portal, which opens up investments in the firm to the subscribed investors and investment advisors.
The OCMX said it has “Spent a considerable time completing its due diligence on Sequant Re Holdings Limited and concluded that there is indeed a tremendous opportunity for Investors and Advisors.”
The OCMX continued, saying that Sequant Re has “A highly regarded management team with excellent track record, a unique business model, a very innovative and efficient ILS investment platform that will be a game changer in the ILS market.”
It’s an interesting approach to a capital raise for an ILS operation. Platforms like the OCMX are more typically used by technology start-ups, or other high-growth companies. There is, however, no reason this couldn’t work for Sequant Re, as it will take the ILS investment opportunity to an investor base who may not even have been aware of it before.
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