Bermuda-headquartered insurance and reinsurance linked securities (ILS) management, servicing, transformation and fronting specialist Horseshoe Group, is adding fund administration to create a full-service offering, with the acquisition of IKONIC Fund Services.
Horseshoe and IKONIC Fund Services have had a joint-venture partnership specialising in fund administration and valuation services for the insurance-linked securities (ILS) and reinsurance linked investment fund market since 2011.
ILS Fund Services has developed a strong client-base in the ILS fund market and for Horseshoe the acquisition of IKONIC is seen as a natural progression and deepening of the relationship, with the combined ILS servicing group set to have $20 billion in client assets under administration and 70 employees operating from offices in Bermuda, the U.S., Cayman Islands and Gibraltar.
Meanwhile, Horseshoe is a leading provider of reinsurance fronting and transformation services to the ILS market, with many of the world’s leading ILS managers utilising the group’s offerings.
CEO of Horseshoe Group Andre Perez commented on the announcement; “We have partnered successfully with IKONIC since 2011 through our joint venture fund administrator, ILS Fund Services, providing fund administration and actuarial valuation services to ILS funds; therefore joining our respective teams is a natural progression. From the perspective of Horseshoe’s existing clients, we are very excited to be able to offer a one stop shop for our clients that require both insurance and fund related services.
“In respect to IKONIC’s clients, the combined companies will enable us to provide a larger global reach, a broader service offering and a stronger senior management team focused on delivering top notch service. Over the years Horseshoe has built relationships with a large number of institutional asset managers and investors which we expect will bring value to our newly acquired fund administration business and its future growth.”
IKONIC, an independent, specialist fund administrator has been providing its services to a range of hedge funds, private equity funds, real estate funds and ILS funds. Once the acquisition is completed, the transaction is subject to customary regulatory approval, the combined fund administration unit will be rebranded as Horseshoe Fund Services.
The aim of the acquisition is to “further solidify Horseshoe’s stance as the largest independent insurance manager to the Insurance Linked Securities (“ILS”) market and expand its service offering to now include fund administration,” according to the company.
Ede Conyers, CEO of IKONIC Fund Services, said on the acquisition; “I am so proud of what we have achieved at IKONIC since we started in 2007, which is why it was very important to the senior management team that we found a partner that had the same core values as us. Similar to IKONIC, Horseshoe prides itself on truly partnering with clients and becoming an integral part of their success.
“IKONIC’s clients and their investors will continue to receive the same best in class service, from both the existing management team and the IKONIC employees, but now will also be supported by a larger company and a very talented senior management team. The transaction will not involve any interruption to IKONIC’s fund operations and therefore the transition to Horseshoe will be seamless for our clients.”
The transaction will leave the larger Horseshoe Group with an impressive full-service offering for the ILS industry, an enlarged experienced management team and a stronger capital base which will enable the firm to invest in key strategic initiatives and infrastructure.
Horseshoe already has a strong and respected position in the ILS market. With this acquisition the firm strengthens that further and also expands into other areas of the hedge fund and investment fund space.