Blue Capital Management, the third-party capital and reinsurance-linked fund management arm of Bermuda based reinsurer Montpelier Re, has announced the successful raising of $23m of new capital from investors through the latest share placement for its listed fund.
Blue capital launched the second placement in its current placing programme for its flagship dual London, Bermuda stock exchange listed reinsurance-linked investment fund, the Blue Capital Global Reinsurance Fund Limited, back in September. Through the latest placement, Blue Capital was seeking to raise new funds from third-party investors to be used in underwriting new catastrophe reinsurance business at the January renewals.
The Blue Capital Global Reinsurance Fund Limited was launched almost a year ago in December 2012 with an initial capital raise of $101.1m. This was followed with the launch of the current placing programme in April 2013, the first placement of which saw an additional $52.3m of shares sold to investors.
With the completion of this second placing of new shares under the programme, the third capital raise for the fund, an additional $23m has been added to the funds assets under management through the sale of 21,101,028 new Ordinary Shares at a price of US$1.09.
The proceeds of this share placement will be used to underwrite fully collateralised catastrophe reinsurance contracts and other instruments, largely expected to be completer at the January reinsurance renewals.
The additional 21,101,028 Ordinary Shares are expected to be admitted to trading on the London Stock Exchange’s Specialist Fund Market and on the Bermuda Stock Exchange (“BSX”) at 8am on the 21st November. Once admitted, the total number of Ordinary Shares in issue will be 172,451,028.
At yesterdays closing share price the 172,451,028 shares gives the Blue Capital Global Reinsurance Fund a total size of approximately $189.7m. Blue Capital has now successfully grown the fund by around 87% in its first year, from the $101.1m it launched.