Twelve Capital: GKB investment stabilises shareholder base

After announcing that one of Switzerland’s cantonal banks, Graubündner Kantonalbank, is taking a 30% stake in the Zurich-headquartered catastrophe bond, insurance-linked securities (ILS) and reinsurance linked investment fund manager, Twelve Capital explained to us that this brings stability to its shareholder base.

The investment in Twelve Capital by Graubündner Kantonalbank (GKB) sees the bank taking a minority stake in the company, replacing one of the founding shareholders XS Participations BV.

So the investment replaces a long-term minority stakeholder with another investor with a long-term view, as Graubündner Kantonalbank (GKB) is known for its partnerships and has an appetite to grow in the asset management space, Twelve Capital told Artemis.

A spokesperson explained, “GKB is an established and stable player in the Swiss market with a clear ambition to strengthen its footprint in the asset management industry.”

Adding that, “GKB has a proven track record of supporting the growth and development of specialised players in the Swiss financial industry by taking a stake and keeping their independency.”

With almost $4 billion in assets under management across its insurance-linked investments business, according to the Artemis Insurance-Linked Securities Investment Managers & Funds Directory, Twelve Capital will see an opportunity to expand and also continue developing new investment products.

Approximately $2.6 billion of Twelve Capital’s AuM is allocated to investments in catastrophe bonds and other insurance-linked securities (ILS) instruments, with the rest allocated to insurance bonds, private insurance debt and equities, as well as a recently launched partnership to target insurtech.

Twelve Capital’s spokesperson also said that, “Especially in the Swiss market, the cooperation between Twelve and GKB is expected to provide potential for further growth.”

While, “The strategic investment brings stability to Twelve Capital’s shareholder base.”

In addition, Twelve Capital is also hoping the relationship with its new shareholder can help it to continue expanding its investment fund offerings and help it continue to grow its platform and business.

“In line with the overall financial market, client and regulatory development, the cooperation between GKB and Twelve is providing the potential for new products or services,” the spokesperson said.

Also read: Twelve Capital gets strategic investment from Graubündner Kantonalbank.