IBI ILS Partners co-founded as Tel-Aviv ILS fund manager by Muraviev

Israel’s second largest independent investment management group, IBI Investment House, has teamed up with ILS portfolio manager Roman Muraviev to launch IBI ILS Partners Ltd., the first insurance-linked asset manager to be based in Tel-Aviv.

IBI Investment House managed around US$11 billion in assets currently, managing a range of private strategies for clients as well as mutual funds.

Roman Muraviev recently left ILS fund manager Twelve Capital, where he managed the catastrophe bond strategy for a number of years, but has reappeared as the co-founder and Managing Partner of newly established IBI ILS Partners Ltd.

IBI ILS Partners Ltd., which is based in Tel-Aviv, Israel, will be focused solely on investments in insurance-linked securities (ILS) such as catastrophe bonds or other insurance and reinsurance linked risk assets.

The new ILS fund manager will have an interesting opportunity to target an investor base which is perhaps not as familiar with the insurance and reinsurance linked asset class, as the more typical European, U.S., Australian and Asian investor base would be considered to be.

For IBI Investment House, gaining an experienced ILS and catastrophe bond portfolio manager to operate a strategy and subsidiary that will compliment its other investment offerings, providing a low-correlated alternative investment choice to its clients, will be an attractive opportunity.

The ILS asset management unit will benefit from coming under the IBI umbrella, enabling it to leverage its systems and compliance regime, as well as to tap into the IBI investor base.

IBI ILS Partners will aim to employ a “systematic strategy underpinned by rigorous research and a comprehensive investment framework” to help it find, allocate to and trade insurance-linked securities (ILS) investment opportunities, according to the ILS managers details.

The ILS fund manager is still in the process of launching and already has commitments of capital for when it is operational, from IBI itself and related associates.

Alternative investments have been growing in Israel, as the investor base both institutional and retail gain experience and an appetite for the sector. ILS will fit well as an alternative that exhibits low correlation to the capital markets.

ILS as an asset class continues to become more broadly known and understood. There is every chance that more dedicated ILS specialists will be established in other countries, with partnerships with established investment houses a way to perhaps gain credibility and traction more quickly.