Fermat UCITS and offshore catastrophe bond funds each surpass $3bn of assets

Fermat Capital Management recently hit new milestones for two of its dedicated catastrophe bond fund strategies, taking the pair to more than $3 billion of assets under management each, while achieving those levels of assets at a particularly rapid pace, Artemis can report.

As perhaps the largest holder and manager of catastrophe bond portfolios in the world, Fermat Capital Management now actively manages two of the largest cat bond fund strategies on offer, with only a handful of funds ever having reached the $3 billion level.

First, Fermat Capital Management’s UCITS catastrophe bond fund strategy has continued to grow through the recent record market issuance over the last twelve months or so.

Fermat launched the Fermat UCITS Cat Bond Fund strategy in February 2024 and rapidly grew it to over $530 million in cat bond assets under management before the end of May that year.

When we last reported on this strategy, the Fermat UCITS Cat Bond Fund had grown considerably larger, reaching almost $2.12 billion of assets by early July 2025.

By the end of 2025, the Fermat UCITS Cat Bond Fund had assets under management of just slightly under $2.54 billion.

Now, as of the last week, Fermat Capital Management’s UCITS cat bond fund has reached just over $3.03 billion of AUM, a new high.

The Fermat UCITS Cat Bond Fund has grown by 35% in the last twelve months and over 19% in 2026 so far.

With its UCITS cat bond fund hitting the $3 billion of assets level in around two and a half years, the ILS manager Fermat’s offshore cat bond fund strategy has technically achieved the same milestone even faster.

The Cayman Islands domiciled offshore strategy, the Fermat Cat Bond Fund, was established in late 2024 and around a year ago surpassed $2.1 billion in assets.

Which means the offshore Fermat Cat Bond Fund has increased its AUM by around 44% in roughly a one year period, so outpacing the UCITS strategy it seems.

Both the UCITS and offshore cat bond funds offered by Fermat were an evolution of previously existing strategies Fermat Capital Management portfolio managed under its previous partnership with asset manager GAM.

They have slightly different mandates, given the UCITS cat bond fund is a more pure cat bond fund strategy, having certain restrictions and liquidity constraints, so the vast majority of its assets are 144A catastrophe bonds.

While the offshore Fermat Cat Bond Fund is less constrained and so can allocate more to private cat bonds and other private ILS arrangements, although 144A issuances remains the majority, so is a more flexible strategy which can also deliver certain benefits for its investors in enabling greater portfolio diversification.

The growth of its two largest catastrophe bond funds has been a meaningful driver of Fermat Capital Management’s ILS assets under management over the last year.

As we reported recently, Fermat reached the $11 billion of cat bond and ILS assets under management mark by July 1st 2026, having grown the number by around 11% since the end of 2025.

With catastrophe bond and insurance-linked securities market activity continuing apace so far this year and the pipeline building for the typically busy late third and fourth quarters, it’s likely Fermat can achieve further growth for these cat bond fund strategies over the rest of 2026.

Analyse UCITS catastrophe bond fund assets under management using our charts here.

View information on dedicated ILS fund managers, as well as reinsurers offering ILS style investment opportunities, in our Insurance-Linked Securities Investment Managers & Funds Directory.