London headquartered insurance-linked securities (ILS) and reinsurance related investments manger Leadenhall Capital Partners LLP has increased its assets under management to more than $6.2 billion in 2020, as the ILS fund manager has added over $600 million just since July.
The increase in ILS assets managed puts Leadenhall Capital Partners among the largest ILS fund managers in the world, according to our Insurance-Linked Securities Investment Managers & Funds Directory.
Leadenhall says that it now expects its AuM to remain well above this level, after having taken into account the redemptions and subscriptions notified to its ILS funds for their January dealing date.
The manager’s AuM has increased since July’s $5.6 billion, after successful fund raising in the second-half of the year with subscription more than compensating for any redemptions experienced year-to-date.
Lorenzo Volpi, Leadenhall’s Head of Business Development commented, “This result has been achieved in an extremely challenging environment for all ILS fund managers, with a number of investors rebalancing their portfolios and focusing their attention on the issues and opportunities which the Covid 19 pandemic has presented. In the second half of the year it has been clear that the new market environment for life and non-life insurance linked investments is an opportunity, and we thank the investors who put their trust in us.”
Luca Albertini, Leadenhall’s CEO added, “The net inflow particularly this year is an important vote of confidence from highly sophisticated and well consulted investors into both the ILS sector and in Leadenhall as a firm and our achievement is particularly important to us as a positive signal on our organisation and on our people in a challenging year.”
Leadenhall explained that its new asset inflow has been almost equally split across its non-life and life insurance linked investment strategies.
The inflows are also split across Leadenhall’s open-ended ILS funds, which have different risk and return profiles, as well as a new managed account (a so called fund-of-one).
Leadenhall continued to expand its business and has plans to further enhance its infrastructure, add to its team with new hires and also develop new investment fund offerings to satisfy investor demand for insurance and reinsurance linked returns.
“This is not the time to be complacent, and in changing times our organisation needs to adapt fast and continuously improve,” CEO Albertini said.