Falcon ILS funds shift to Solidum, new reinsurance funds to launch

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Falcon Fund Management (Luxembourg) S.A., an investment management subsidiary of Switzerland-based Falcon Private Bank, is aiming to increase its activities in the insurance-linked securities (ILS) space, partnering with Solidum Partners AG for its ILS fund management.

falcon-fund-managementPreviously, Falcon’s ILS fund strategies were managed by Zurich-headquartered ILS specialist investment manager Twelve Capital AG since 2013.

Twelve Capital’s strategy has shifted towards managing its own institutional focused ILS funds, which this change in Falcon’s ILS fund manager reflects.

Solidum Partners AG is a long-standing Swiss ILS and reinsurance linked asset manager, who will take on responsibility for managing the Falcon ILS and catastrophe bond funds as of August 1st 2019.

Currently, the Falcon ILS funds have a total asset base of $401 million, as of the end of May.

Falcon is aiming to grow its existing cat bond fund and ILS fund strategies, with the help of Solidum and also plans to launch new collateralised reinsurance focused fund strategies as well.

The company said it hopes to unlock new potential for growth and draw on Solidum’s expertise in managing insurance and reinsurance linked investments.

Falcon said that with the expansion of ILS risk categories into new areas such as cyber risks and terrorism, the investment firm looked for a manager that had expertise that extends beyond just natural catastrophe risks.

“We have found this in-depth insurance knowledge in Solidum in Zurich, to whom we are entrusting the fund management of our ILS range. By doing this, we are laying the foundation for further growth in the cat bond segment,” commented Alfred Brandner, CEO of Falcon Fund Management.

Solidum has been operating as a catastrophe bond investment manager since 2004, which Falcon says makes it the longest-standing ILS fund manager located in continental Europe.

“Its continuous success and reinsurance expertise were what made us decide to work with Solidum,” explained Harald Steinbichler, Member of the Board of Directors of Falcon Fund Management.

After the change in ILS fund manager, the two existing Falcon ILS funds, which are focused on catastrophe bond investments, will be renamed to the Solidum Falcon Insurance Linked Strategy and the Solidum Falcon Insurance Opportunities Fund.

Falcon Fund Management is also now planning to expand its ILS fund range, with two additional investment funds focused on collateralised reinsurance assets set to be made available to institutional investors from August 1st.

These new funds will cover the full range of reinsurance, the investments firm explained.

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