Convex Group, which was set up by insurance industry veteran Stephen Catlin, has secured $500m of capital from investment firm Sixth Street, which lifts the specialty (re)insurer’s total to $3.2bn.
The $500m of preferred equity capital from affiliates of Sixth Street follows a recent $1bn capital raise from a consortium led by Onex and GIC, in which Sixth Street also participated. Convex launched with $1.7bn of capital in April 2019. The recent investments will assist with its plan to take advantage of hardening market conditions, but in the longer run new capital should help arrest the hard market cycle.
Sixth Street is a global investment firm with more than $50bn in assets under management. It is an active global insurance and reinsurance investor through its $24bn Sixth Street TAO platform.
Stephen Catlin, CEO of Convex, said: “We are pleased to be partnering with the Sixth Street team to strengthen our position even further in today’s cyclically advantageous market environment. This significant additional capital provides us with greater flexibility as we continue our recent momentum in growing our business.”
Convex underwrites insurance and reinsurance across a diverse range of business lines including aerospace, casualty, energy, marine and property.
Michael Muscolino, co-founder and partner of Sixth Street, said: “With an exceptional track record and disciplined team of underwriters, Convex is uniquely positioned to pursue opportunities made available by a hardening market. Our cross-border financials investing franchise is pleased to be supporting Convex management alongside their impressive existing institutional investor base, and we look forward to our long-term partnership.”