Convex lifts capital to $3.2bn, adding $500m from investor Sixth Street

Convex Group, the specialty insurance and reinsurance company founded by Stephen Catlin, has lifted its committed capital once again, with the total now reaching $3.2 billion.

This is after a $500 million preferred equity investment made by affiliates of experienced insurance and reinsurance investor  Sixth Street, global investment firm with around $50 billion under management.

Stephen Catlin, CEO of Convex, commented, “We are pleased to be partnering with the Sixth Street team to strengthen our position even further in today’s cyclically advantageous market environment.

“This significant additional capital provides us with greater flexibility as we continue our recent momentum in growing our business.”

This latest investment follows Convex’s recent $1 billion capital raise from a consortium of investors led by Onex and GIC, in which Sixth Street also participated.

Now at over $3.2 billion of committed capital, the additional injection will have helped Convex increase its participation and writings at the key January reinsurance renewals, we assume.

A. Michael Muscolino, Co-Founder and Partner of Sixth Street, also commented on the capital raise, “With an exceptional track record and disciplined team of underwriters, Convex is uniquely positioned to pursue opportunities made available by a hardening market.

“Our cross-border financials investing franchise is pleased to be supporting Convex management alongside their impressive existing institutional investor base, and we look forward to our long-term partnership.”

Convex added capital in another form last July, through its first Hypatia Re catastrophe bond transaction, which brought the capital markets firmly into its reinsurance and retro program to the tune of $300m.