Nephila limits capacity, closes two funds to new investor
NEW YORK & HAMILTON, Bermuda--(BUSINESS WIRE)--
& Co. L.P. (NYSE: KKR), a leading
global investment firm, and Nephila
Capital Ltd. ("Nephila"), a leading investment manager focused on
investing in natural catastrophe and weather risk, today announced KKR's
acquisition of a 24.9% interest in Nephila. Shares will be acquired pro
rata from Nephila management and from Nephila's minority stakeholder,
Man Group plc, which will retain an 18.75% interest. Financial terms of
the transaction were not disclosed.
Nephila was established in 1998 by Frank Majors and Greg Hagood as part
of Willis Limited, at the time a KKR portfolio company. Nephila
specializes in investing in reinsurance risk, including insurance-linked
securities, catastrophe bonds and weather derivatives. Through its
investment strategies, Nephila provides its investors with access to
sources of returns that are uncorrelated to the global financial markets
relative to other asset classes.
Kravis and George
Roberts, Co-Chairmen and Co-CEOs of KKR, said: "In backing Nephila,
we are partnering with a team we have known for more than 15 years,
dating back to our investment in Willis Group. As the first dedicated
manager of catastrophe risk investment strategies, they share the
entrepreneurial spirit that pervades KKR's culture and, with an
excellent 14 year track record, we think they are the best team in the
Nephila's management committee stated: "Having access to KKR's global
network of relationships, infrastructure and management expertise will
open up new doors for Nephila and our investors. We're confident that
our new partnership will strengthen relationships with our insurance
counterparties and introduce new sources of investment opportunity,
particularly with state governments that are exploring new ways to
transfer catastrophe exposures."
Through its investments, Nephila provides capital relief to primary
insurers, reinsurers and state governments in catastrophe-prone areas,
giving them the flexibility to write additional insurance for homeowners
The entire Nephila management team will continue to manage the business
as they do today, and Nephila's investment strategies will also remain
unchanged. In addition, all proceeds received by management at closing
will be reinvested in Nephila funds.
The investment in Nephila is part of KKR's efforts to broaden its
offering of liquid alternative investment strategies and further the
expansion of the firm's hedge fund platform. The investment was made by
the firm and not through KKR's investment funds.
Nephila also announced today that it will be closing its Juniper
Catastrophe Fund and Triton Catastrophe Fund to new investor
subscriptions based on its current assessment of market conditions. Its
other strategies remain open.
Nephila's investment committee stated: "We are committed to building the
optimal profile of risk/return for our investors and will continue to
actively monitor our investment capacity in each strategy relative to
Nephila Capital Ltd is a leading investment manager specializing in
reinsurance risk. Nephila offers a broad range of investment products
focusing on instruments such as insurance-linked securities, catastrophe
bonds, and weather derivatives.
Nephila has assets under management of approximately $8 billion as of
January 1, 2013 and has been managing institutional assets in this space
since it was founded in 1998. The firm has over 50 employees based in
Bermuda, San Francisco, CA and Nashville, TN. Further information can be
found at www.nephila.com.
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $66.3 billion in assets under
management as of September 30, 2012. With offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with investors through
its client relationships and capital markets platform. KKR & Co. L.P. is
publicly traded on the New York Stock Exchange (NYSE: KKR), and "KKR,"
as used in this release, includes its subsidiaries, their managed
investment funds and accounts, and/or their affiliated investment
vehicles, as appropriate. For additional information, please visit KKR's
website at www.kkr.com.
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