Till Capital Ltd., the parent company of hedge fund style reinsurance firm Resource Re, has increased its investment capabilities and options by purchasing 10% of alternative asset manager Courant Capital Management LLC.
Till Capital, which we wrote most recently about here when it listed its shares on the TSX Venture Exchange, is the new name for the holding company to emerge from Americas Bullion Royalty Corp’s acquisition of Resource Holdings Ltd. That gave Till Capital ownership of Resource Re Ltd. which was the first hedge fund style reinsurance firm to join the Multi-Strat Re Ltd. platform in September 2013.
So Till Capital now represents a diversified holding company which is primarily engaged in the reinsurance business, supported by ancillary investments in royalties and equity holdings in the resource sector. The premium float generated by reinsurer Resource Re is the firms main source of assets for investing.
Till Capital announced that it has acquired a 10% interest in Courant Capital Management LLC, a New York-based alternative money management firm, today. Courant Capital will in future be responsible for managing a portion of Till’s assets, using its relative value market neutral investment strategy covering large cap US equities.
“Courant fits perfectly with Till’s goal of optimizing capital use from the reinsurance business,” commented William Lupien, Chief Investment Officer of Till Management, the wholly owned investment management division of Till Capital. “We look forward to working with Courant.”
William Sheriff, Chairman & CEO of Till Capital added; “Courant’s unique large-cap equity trading strategy, which is designed to generate consistent returns while limiting market risk is ideally designed to provide a growing capital base for our reinsurance business.”
Till Capital and the reinsurer Resource Re is expanding its investment-side capabilities with this investment in Courant Capital. It makes sense to devote portions of the reinsurance float to different managers, so as to diversify the investment portfolio and reduce risk to the investment portfolio.
Till Capital is an interesting emerging business model to watch, leveraging reinsurance business with a hedge fund style asset side as part of a diversified investment focused holding company. The potential upside for its investors could be impressive as it continues to develop its reinsurance and investments platform.