Elliott acquires controlling interest in Bermuda ILS manager
Elliott Management Corporation, a hedge fund manager based in London, will acquire a controlling interest in Aeolus Capital Management (ACM), a Bermuda-based manager of insurance-linked securities (ILS), and its affiliates.
The transaction is expected to be completed before the end of 2016, but is subject to regulatory approval.
ACM founder Peter Appel as well as Allied World Assurance Company are the selling shareholders, who will each retain significant minority ownership positions.
Appel will continue to serve ACM as its non-executive chairman, and Allied World will continue as a substantial capital provider to the investment funds managed by ACM.
Andrew Bernstein, Chris Grasso, Trevor Jones and Frank Fischer, all part of the ACM management team, will keep their roles and will retain their entire equity ownership interest in the business following closing of the transaction.
Appel commented: “This transaction has been months in the making, and we have worked carefully to ensure that this new partnership will serve the best interests of our investors. Elliott is one of the world’s most highly respected hedge funds, having compiled an extraordinary record of outstanding and consistent performance over nearly forty years.
“More importantly for us, though, Elliott shares our analytical and disciplined approach to generating exceptional risk-adjusted returns for our investors, and will provide us with access to additional resources, insights and relationships to help us broaden our product offerings and further establish Aeolus as an enduring and growing franchise.”
Mark Cicirelli, a portfolio manager at Elliott, commented: “Elliott is pleased to become a full partner in the ownership and stewardship of ACM. We have been investing in Aeolus since 2012 and are also very familiar with the company as a core reinsurance provider to Asta’s Syndicate 4242 at Lloyd’s in which we are invested.
“Over the years we have developed a strong relationship with the Aeolus management team and have long recognised their ingenuity and skill in managing capital on behalf of their investors and structuring reinsurance and retro protection for their cedants. We believe Aeolus is the pre-eminent asset manager in the industry and we look forward to working closely with our new partners.”
