Golden Gate Capital invests $750m in re/insurer start-up
A new re/insurer has been formed with $750 million of capital provided by various funds managed by Golden Gate Capital, a private investment firm, and led by two seasoned industry executives who have also invested.
Nassau Reinsurance Group will focus on building and operating onshore and offshore platforms with long tail liabilities focused on the life, annuity and long-term care sectors.
It will be led by insurance industry executives Phillip Gass, previously the chairman of Fidelity & Guaranty Life and managing director with HRG Group, and Kostas Cheliotis, previously director and chairman of the Compensation Committee of FGL and senior vice president & deputy general counsel of HRG.
Gass will serve as chairman and chief executive and Cheliotis as executive vice president & chief operating officer.
Golden Gate Capital, a private investment firm with more than $12 billion of capital under management. Golden Gate Capital’s funds have no time horizons, which allows the firm to make long-term investments without liquidity constraints.
The initial capital will fund the company’s immediate build-out and organic growth plans, as well as potential future acquisitions and reinsurance transactions. It intends to seek ratings with this initial capital to meet its growth objectives and may opportunistically seek to raise additional capital and enter into strategic partnerships to grow the business over the long term.
Gass said: “We are very pleased to have partnered with Golden Gate Capital as we look to build a dynamic platform with insurance, reinsurance and asset management businesses. With Golden Gate Capital’s long-term investment philosophy, permanent capital structure, and strategic focus on insurance and financial services, we believe we are uniquely positioned to grow our franchise and build significant value over a long time horizon."
David Dominik, managing director of Golden Gate Capital, said: “We are very pleased to be partnering with Phil Gass and Gus Cheliotis, two accomplished and successful executives in the insurance industry, on this exciting new venture.
“Phil and Gus have a compelling track record of launching and leading profitable insurance platforms, and share our values and philosophy of building strong, sustainable businesses for the long term.”
