Phoenix Merchant Partners, LP, an independent investment firm, has announced a number of new hires, including Julia Henderson’s as Managing Director, Insurance Solutions; as well as the closing of its first transaction, which finances non-catastrophe P&C reinsurance company Gryphon Holdings.
The financing closed on January 10 and marks the official launch of its private credit and lending solutions platform Phoenix stated.
It also provides for the capitalization of Gryphon Holdings’ balance-sheet and finances the future growth of its reinsurance program.
The transaction features a combination of a delayed draw senior facility represented by a contingent capital note, and the issuance of preference shares, with terms that will allow Phoenix and related parties to provide additional growth financing over the course of the next several months.
Art Mbanefo, Phoenix Founder, CEO and CIO, said: “We see significant unmet financing needs among unsponsored businesses in the middle market and believe our creativity, prudent approach to structure and focus on process uniquely position us to identify and execute on that differentiated opportunity set.
“We are excited to launch this part of our platform through our relationship with Gryphon, which provides testament to our ability to pivot and offer bespoke financing solutions that match company and industry dynamics.”
Gryphon Holdings will have a strategy focused on provision of non-catastrophe quota share property and casualty (P&C) reinsurance services.
Clifford Chance LLP and Sidley Austin LLP served as legal counsel for Phoenix on the transaction, while Houlihan Lokey will act as financial advisor on the next stages of the deal.
“Art and the team at Phoenix have established well-deserved reputations as creative capital providers at a number of companies and across multiple geographies, this is not the first time we see them bring new innovations to the insurance market,” said Arik Rashkes, Managing Director and Co-Head of Houlihan Lokey’s Financial Services Group.
He added: “We believe that this could be the first of many innovative financings by the Phoenix Merchant Partners platform that can help redefine how companies approach financing alternatives.”
Phoenix’s latest announcements include the hiring of industry veteran Julia Henderson, as Managing Director, Insurance Solutions, effective February 1.
The executive brings to her new role significant reinsurance and insurance-linked securities (ILS) industry experience.
Henderson’s most recent position was at Vesttoo, where she worked as Chief Commercial Officer.
Prior to that, she was President and Head of Portfolio Management at Stable Corporation, a technology company that provides an index-based platform for commodity hedging and utilises collateralized reinsurance techniques to bring in some of its capacity, where she remains on the board of directors.
Phoenix has also hired Adrian Macedo, who joins the company as Managing Director and Head of Investments, from his most recent role at ORIX USA.
The firm has also added Benjamin Weston to its Advisory Board. He recently served as Global Head of Alternative Investments and Chief Investment Officer of the Alternatives Investments Department at Abu Dhabi Investment Authority (ADIA).
Commenting on the appointments Mbanefo said: “Our people will always be our greatest asset, and the addition of these incredibly talented and highly-regarded professionals provide further testament to the opportunity we see for our platform.
“In founding Phoenix, I set out to build a truly institutional business, and we have established an exceptional foundation of insight and experience from which to grow. We look forward to continuing to strategically expand our team and advisory board as we work with high quality companies and investment partners.”
