Life and annuity re/insurance firm Global Atlantic Financial Group has closed a more than $2.4bn third-party capital raise for its second reinsurance co-investment vehicle, Ivy Co-Invest Vehicle II LLC (Ivy II).
Ivy II is a reinsurance co-investment vehicle through which Global Atlantic brings third-party capital into its business to augment its ability to write large life and annuity reinsurance deals.
According to the announcement, recently raised funds will be deployed, on behalf of third-party investors, alongside the Global Atlantic balance sheet in qualifying life and annuity reinsurance transactions.
Global Atlantic sees the capital as helping to bolster its own capital base, enhancing its combined resources to enter into reinsurance deals.
Ivy II shareholders are to benefit from Global Atlantic’s track record and underwriting abilities, as well as from the firm’s access to risk and ability to structure reinsurance transactions.
A subsidiary of KKR & Co. Inc. (KKR) will serve as investment manager for the assets backing Ivy II’s reinsured liabilities, similar to the role played by KKR with respect to Global Atlantic’s first reinsurance co-investment vehicle, Ivy I, and Global Atlantic’s assets.
“This is a great time to bring additional capital to the industry, and we are thrilled that our strategic partnership with KKR has allowed us to broaden the group of investors in Global Atlantic and Ivy II. With access to Ivy II’s committed capital, we can do more to serve our reinsurance clients in a growing market,” said Phil Sherrill, Chief Strategy Officer for Global Atlantic.
“We are excited by Ivy II investors’ confidence in our reinsurance strategy and franchise,” said Manu Sareen, Co-President of Global Atlantic, and Head of the Institutional Business.
“We see strong demand for reinsurance solutions, driven by industry-wide restructuring, an evolving macroeconomic environment, and lower availability of historical sources of capital for the industry. With Ivy II, we are better positioned to support our reinsurance clients’ needs and to meet our goal of being our clients’ reinsurer of choice.”
Ivy II was established following the successful deployment of Ivy I, which was founded in 2020 with over $1bn of capital.
Ivy II has a diverse investor base, across institutions including sovereign wealth funds, pensions, endowments, insurance companies, family offices, and high net worth individuals.
Global Atlantic will deploy its own balance sheet capital alongside Ivy II in qualifying life and annuity reinsurance transactions, which will ensure strong alignment between Global Atlantic and Ivy II shareholders.
