Swiss Re Insurance-Linked Fund Management

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CATCo raises $88.4m for retro Reinsurance Opportunities Fund


Bermuda headquartered CATCo Investment Management, the reinsurance and retrocession linked investment fund manager, has successfully raised $88.44 million for its flagship listed CATCo Reinsurance Opportunities Fund Ltd.

CATCo’s fund launched a placement programme and an initial placing, seeking to raise new equity capital for the retrocessional reinsurance investment fund, a month ago. It has already announced the results of a successful raise, which based on the capital raised of $88.44 million added to yesterday’s closing NAV, will take the fund to around $432.34 million in assets.

The new capital will be put to good use during the upcoming January reinsurance renewal season, when many of the world’s largest retrocession programs come up for renewal and much of the fund’s investment activities occurs.

CATCo announced that the placing and offer resulted in applications and commitments for a total of 88,435,018 new C Shares at the price of US$1 per share, raising gross proceeds of $88.435,018 million.

Nigel Barton, Chairman of the CATCo Reinsurance Opportunities Fund Ltd., commented on the successful capital raise; “The fund raise has exceeded expectations and the Board welcomes the strong support shown from existing and particularly new shareholders.

“During its first five years of operations the Company has on average out performed its targeted net returns of Libor +9-12%. With returns on a no loss basis for 2016 expected to be similar to the current year, with a similarly de-risked portfolio, prospects for the Company continue to look strong.”

Tony Belisle, CEO of CATCo Investment Management, Ltd., added; “The proceeds received from the fund raisings for both the private and public fund will allow the CATCo group to meet the increased demand from its buyers ahead of the 2016 renewals.

“Importantly the public fund has the flexibility to raise additional capital during 2016 if a significant event occurs or if new and exciting investment opportunities arise.

“The combined capital across all of the CATCo funds is expected to exceed $3bn enabling us to continue to bring capital efficient solutions to our clients.”

CATCo remains one of the largest collateralised players in the retrocession market, with its product widely used by many of the world’s largest reinsurance players. Its strategy since launch has seen steady growth and attractive returns for its investors, as evidenced by this funds out-performance across the five years it has been in operation.

Passing the $3 billion of reinsurance and retrocession assets under management is another milestone for the investment manager, helping it to underline its important and leading role in the product set it offers to the market.

An application has been made for the new CATCo Reinsurance Opportunities Fund Ltd. shares to be admitted to trading on the Specialist Fund Market of the London Stock Exchange, which is expected to happen on the 2nd November 2015.

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