Latin America-focused BTG Pactual Asset Management has hired a team from specialist reinsurance investment manager Lutece in order to launch a new reinsurance offering for its clients.
“The Lutece team is a great addition to our organisation. This exciting move will enable us to generate returns uncorrelated to traditional credit markets and existing revenue streams,” said Steve Jacobs, Chief Executive Officer (CEO) of BTG Pactual.
Lutece is an investment manager founded by industry veterans Erik Manning and Angus Ayliffe that specializes in investing in reinsurance risk.
The Bermuda-based team, which includes Manning, Ayliffe and their experienced team, will manage BTG Pactual’s Retro Opportunities strategy, which will invest in the high-yielding retrocessional segment. The aim is to launch a “low volatility” strategy during 2018 that will focus on senior and super-senior tranches of the regulatory capital of reinsurance companies.
“Reinsurance is a market that BTG Pactual knows well and in which we have a history of investment. We see significant opportunities in the insurance-linked securities sector, and are now well positioned to take advantage of these through our expanded capabilities,” added Jacobs.
The Investment Committee, comprised of senior management from BTG Pactual and Lutece, will oversee the strategies, while the reinsurance team is expected to leverage the firm’s scale, governance, risk management expertise and operational infrastructure of BTG Pactual.
