London based insurance-linked securities and reinsurance-linked investment manager Leadenhall Capital Partners continues to experience growth in its assets under management thanks to inflows of capital from both new and old investors. The investment manager now has over $850m under management and hopes to grow that further by early 2013.
Leadenhall have had new capital committed to both of their open-ended fund strategies, the Leadenhall Value Insurance Linked Investment Fund PLC and the Leadenhall Diversified Insurance Linked Investment Fund PLC, in recent months, as well as into private accounts.
The most recent new commitment resulted in Leadenhall listing a new Class E US$ share class on the Irish Stock Exchange at the beginning of the month. Leadenhall’s funds have different classes of shares on offer with different currencies and a different fee structure based on the investor commitment period.
Luca Albertini, CEO of Leadenhall Capital Partners, told us; “Our AUM grew due to both increased allocations from existing investors and new investors into our funds. We are also seeing continued interest into our strategies for 2013 investments.”
Back in May Leadenhall had just cleared the $650m mark for the first time thanks to inflows from pension funds in the UK and other parts of Europe. This was split as $332m within the two Leadenhall funds and another $320m in managed accounts invested in ILS instruments. Now, at $850m this split looks more like approximately $435m in the two funds and the remainder in managed accounts. Approximately 50% of the total assets under management is in non-life insurance linked investments with the balance in life investments.
As of today all strategies managed by Leadenhall have generated a positive return for the year and showed no negative yearly return since their inception three years ago despite the suite of natural catastrophe events occurred in the period.
Leadenhall are a prime example of the continuing strong interest that institutional investors, such as pension funds, have been showing to the ILS and reinsurance-linked investment space. Their continued fund-raising success is testament to the attractive nature of the asset class. Luca Albertini told us that he hopes to see the $850m of assets under management grow even more from new investors they are already speaking to regarding commitments to the fund in early 2013, with indicative commitments for the first two dealing dates of the year currently standing in excess of $100m.