Two listed insurance-linked securities (ILS) funds, which are both in the process of new share placements, have extended the placing timetables, thus giving prospective investors more time to subscribe to their latest rounds of fund-raising.
Firstly, the Blue Capital Global Reinsurance Fund Limited, which is managed by Blue Capital Management, the third-party capital and reinsurance-linked asset management arm of Bermudian reinsurer Montpelier Re, has extended its latest share placement.
The original target date for completion of the share placement for the Blue Capital Global Reinsurance Fund was today, the 22nd October. This date has now been extended to 15th November as the last date to receive commitments, with an announcement expected on the results of the placing now due on the 18th November. The resulting shares will then be dual-listed on the London Stock Exchange’s Specialist Fund Market and the Bermuda Stock Exchange on the 21st November.
Secondly, the DCG Iris ILS fund, which is managed by Dexion Capital and its ILS investment manager Credit Suisse, has also announced an extension to its current round of fund-raising.
DCG Iris had targeted to close its share placing yesterday, the 21st October. This has been extended in an announcement published just now to a closing date of the 6th November and for the resulting new shares to be admitted to the London Stock Exchange on the 11th November.
No information has been provided as to the reason for either ILS fund’s extension of the current share placements. With both ILS funds in the market at the same time it perhaps makes sense to extend the timetables in order to ensure all potential investors are marketed to. The extension will also give them a chance to maximise the placement and raise as much new capital as possible, capital which will be targeting deployment opportunities at the January reinsurance renewals.
It’s also worth noting that Blue Capital is simultaneously raising capital for a new collateralized reinsurance firm which it plans to list on the New York Stock Exchange, so there is a lot going on for potential investors to absorb right now.
We will update you as and when the two listed ILS funds complete their latest share placements.