Hudson Structured Capital Management (HSCM), the reinsurance, insurtech, insurance-linked securities (ILS) and transportation focused investment manager, has invested through entities of its HSCM Bermuda unit, in life insurance sector specialty lender and premium finance firm Gracie Point Holdings, LLC.
Gracie Point Holdings, LLC is a global provider of life insurance premium finance and has a long connection with the Hudson Structured team, as Vikas Singhal (founding partner of HSCM Ventures) was previously employed by the firm and remained an advisor after joining HSCM when it was formed.
Gracie Point said on Friday it has closed a $75 million issuance of preferred equity, with the lead investors in the equity issuance being affiliated with Hudson Structured Capital Management Ltd. (undertaking its reinsurance business as HSCM Bermuda.
The firm said that HSCM has been a long-term investor in Gracie Point.
Also participating in the equity financing were affiliates of Kuvare Holdings, a provider of insurance financing, life and annuity products and reinsurance.
The preferred equity issue will be used to fund continued growth and expansion for Gracie Point, as well as strategic acquisitions, the company said.
It noted that its portfolio of loans more than doubled in 2020 and is on-track to more than double again in 2021.
Harish Raghavan, CEO of Gracie Point commented, “Our growth is accelerating globally. HSCM Bermuda and Kuvare will be excellent partners, providing both capital and insight. This capital raise allows us to fund investments in our organization and pursue strategic acquisitions.”
Michael Millette, Managing Partner at HSCM Bermuda, is set to become a Board Member at Gracie Point after this transaction.
Dhiren Jhaveri, CEO of Kuvare, will also join the Gracie Point Board.
Millette commented, “We have had a long-standing relationship with Gracie Point and are pleased to support the Company as it achieves its global objectives; the potential is significant.”
Jhaveri added, “We are excited to become a strategic partner to Gracie Point, and look forward to collaborating with Gracie on funding and distribution capabilities to accelerate its long term growth.”