Ex-Goldman Sachs partner and managing director of structured products Michael Millette, a key figure in the development of the catastrophe bond and ILS market since the mid-1990’s, is returning with a new venture named Hudson Structured Capital Management.
Bloomberg wrote earlier today that Millette will be launching a company called Hudson Structured Capital Management, which we’ll call Hudson Structured for short, as an investment management firm focused on insurance, reinsurance and transportation as well.
From Artemis’ understanding of Millette’s career at Goldman Sachs and what we have picked up from conversations in the market in the months since his retirement from the investment bank, Hudson Structured will facilitate investment opportunities in re/insurance securitization and structured transactions.
One of Millette’s goals at Goldman Sachs was to develop the ILS market into a more broadly diverse set of structured risks, so outside of the catastrophe risks that currently dominate the market.
In his time at Goldman, Millette worked on securitizations and structured products featuring a wide range of insured risks, from health care with the Aetna and Unum deals, to the first excess casualty transaction Avalon Re, to life insurance securitizations, motor risks and more.
Millette and the various teams he worked with at Goldman Sachs always saw the potential of the ILS market as much greater than purely providing reinsurance for catastrophe risks.
We understand that Millette has been busily working on establishing a business plan and team, the first member of which Bloomberg has revealed as David Andrews, whose previous work history involved working with investors in the aviation sector, time at Pimco, UBS and BNY Mellon. Both Millette and Andrews are listed as Managing Partners of Hudson Structured on Linkedin.
So we’re expecting Hudson Structured to be a little more than just another ILS asset manager, likely looking to be innovative, bring new risks to the ILS space, structure risks into different types of products that its own investors may appreciate. It may also look to combine the transportation and re/insurance aspects, potentially also with some focus on infrastructure risks, which is another area Millette has expertise.
It’s impossible to 100% confirm the Hudson Structured strategy at this time and we look forward to covering more about the firm as it becomes active in the space.