Petra Haven Capital LLC has won a sub-advisory mandate for insurance-linked securities (ILS) investments from Verity Asset Management, Inc., a Durham, North Carolina based asset manager and registered investment adviser.
Petra Haven, founded by Brad Chance in 2012, launched as one of the few U.S. domiciled ILS managers, based in Charlotte, North Carolina.
The ILS manager established a catastrophe bond fund with a small allocation of capital from a regional U.S. pension fund as well as some family office money. Since launch, Petra Haven has been managing that cat bond fund while also working to introduce large institutional investors to reinsurance and ILS through a number of other initiatives.
Leading Verity Asset Management’s allocation into this space is their Head of Fixed Income, Brad Corbett. Corbett an 11 year veteran from asset manager Franklin Street Partners in Chapel Hill, NC has been involved in the alternative asset space since 2002. He has been following the development of ILS and the catastrophe bond market, from its earliest days as an esoteric investment into the alternative asset class which is more widely known and accepted today.
Verity will look to bring exposure to catastrophe bonds and ILS into its multi-asset class income strategies, through an allocation to Petra Haven Capital. This is likely to begin with pure cat bond investments, but the mandate will allow that strategy to expand over time.
Verity also intends to offer ILS to its roster of institutional clients as an asset class they can establish a private mandate for, which again would be managed by Petra Haven. These private mandates could be cat bond focused or more broadly targeting reinsurance linked investments and collateralized reinsurance.
This new partnership will enable Petra Haven Capital to build its assets under management and raise its profile to other U.S. institutional investors looking for an onshore ILS manager to work with. Verity gains an experienced but smaller player in the ILS space to manage its entry into ILS, with the ability to develop a long-term relationship as the two asset managers help each other to grow.
Corbett commented on the announcement; “At Verity we’re excited about cementing a relationship that has been a year in the making and are looking forward to delivering the value to investors that an allocation to ILS can provide to an overall portfolio.”
Chance added; “Petra Haven looks forward to helping Verity bring ILS and reinsurance linked returns to its investor base. We’re excited by the prospects of this developing partnership.”
Disclosure: Artemis’ owner Steve Evans has been an advisor to Petra Haven Capital LLC.