FOSUN International Limited, a Chinese privately-owned global investment and asset management conglomerate with a liking for investing in insurance and reinsurance, has taken its first step into the ILS fund management space, acquiring a majority stake in TENAX Capital Limited.
Tenax Capital is a London based hedge fund manager founded by its CEO Massimo Figna and launched its first insurance-linked securities (ILS) strategy in 2017 with a UCITS compliant catastrophe bond fund, the TENAX ILS UCITS Fund.
Tenax Capital was previously known for its credit investment and financial equity funds, but moved into the ILS sector as it saw an opportunity to expand.
Now, FOSUN has announced this morning that it has acquired a majority shareholder interest in TENAX Capital, as part of a strategy to expand its global asset management business.
TENAX was originally founded in 2004 and is regulated as an Alternative Investment Fund Manager (“AIFM”).
The manager has 15 years of experience across pan-European investment capabilities, with actively managed strategies ranging from long and long/short financial equities, SME Private Debt and insurance linked securities (ILS) the focus.
TENAX is largely focused on managing assets for European institutional investors and has around €1 billion of assets under management. The company runs strategies that have proven particularly attractive to insurance companies, banks and their respective customers, FOSUN said.
Jun Li, CEO of Fosun Asset Management, Co-President of Fosun Insurance Group, commented, “We welcome the experienced and talented TENAX team joining Fosun today. The capable investment team, regulated business licenses and distribution channel of TENAX complement Fosun’s global asset management business. We believe, along with our other asset management companies, TENAX will provide even better investment solutions to Fosun’s insurance subsidiaries, portfolio companies, business partners and third-party investors.”
Massimo Figna, Founder and CEO of TENAX, added, “I am very proud that TENAX will be part of a reputable and fast global multinational growing company. TENAX’s success, built on its result driven culture and innovative investment solutions, will grow from strength to strength being part of Fosun’s ecosystems, generating significant synergies. This partnership will allow TENAX to fulfill its goal to offer its investment solutions at a global scale.”
FOSUN said that TENAX will become one of its most important European asset management platforms, offering investors in the region and globally with access to new and innovative investment solutions, as well as access to China’s fast-growing financial markets.
The acquisition is seen as part of a strategy to grow FOSUN’s global asset management business under its Wealth Ecosystem.
The addition of ILS adds another avenue for FOSUN to seek growth in an industry it already knows given its previous investment holdings across insurance and reinsurance markets. FOSUN has a stake in reinsurance firm Peak Re, as well as in Chinese insurers and had previously owned Ironshore before its sale to Liberty Mutual.
Given its investments in reinsurance, adding an asset management platform with an ILS fund is an interesting addition and it will be fascinating to see how FOSUN puts that to work among its broader conglomerate of holdings.
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