Global Atlantic Financial Group has raised more than $2.4bn of third-party capital for its second reinsurance co-investment vehicle, called Ivy Co-Invest Vehicle II (Ivy II).
With the move, the company has concluded the process of raising funds for Ivy II.
Global Atlantic will use the fund for its investors. It will also use its own balance sheet to support life and annuity reinsurance deals.
Global Atlantic said Ivy II shareholders are set to benefit from its experience in the reinsurance sector, as well as its relations with clients, underwriting capabilities and others.
Furthermore, a KKR subsidiary will act as the investment manager for the assets of Ivy II’s reinsured liabilities.
This will enable investors to take advantage of KKR’s investment expertise and scale.
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Ivy II’s investor base features different players such as sovereign wealth funds, pensions, endowments, insurance companies, family offices and high-net-worth individuals.
It functions as the reinsurance marketplace for reinsurance deals sourced, negotiated and underwritten by Global Atlantic subsidiaries.
The independently operated vehicle uses Global Atlantic’s reinsurance expertise and employs its co-investment framework to help life and annuity firms with their capital, risk management and strategic goals.
Global Atlantic Financial Group chief strategy officer Phil Sherrill said: “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.”