Specialty insurance and reinsurance company Convex has secured $500m in committed preferred equity capital from affiliates of investment firm Sixth Street.
The investment comes on the heels of Convex’s recent $1bn fundraise from a consortium led by Onex and GIC, in which Sixth Street was also an investor.
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Launched in 2019 with a committed capital of $1.7bn, Convex underwrites insurance and reinsurance across a spectrum of business lines including aerospace, marine, casualty, energy, and property among others.
The latest investment from Sixth Street takes the company’s total committed capital to over $3.2bn.
The start-up intends to use the money to further accelerate its growth in the commercial insurance and reinsurance markets.
Convex CEO Stephen Catlin 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.
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By GlobalData“This significant additional capital provides us with greater flexibility as we continue our recent momentum in growing our business.”
Sixth Street, which oversees $50bn in assets, is an active investor in insurance and reinsurance businesses via its $24bn Sixth Street TAO platform.
Speaking on the latest investment, Sixth Street co-founder and partner Michael Muscolino 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.”
In July 2019, Cytora, an AI-powered platform for commercial insurance underwriting, teamed up with Convex to develop artificial intelligence (AI)-powered solution for the commercial insurance sector.
