AlphaCat boosts ILS offering with capital raise

Valiudus subsidiary AlphaCat Managers boosts its ILS offering and renews its sidecar with $564 million of new subscriptions and commitments for deployment during 2015.

The newly raised capital consists of $409 million for the AlphaCat ILS Funds and $155 million for AlphaCat 2015, a special purpose vehicle formed for the purpose of investing in collateralised reinsurance and retrocessional contracts written by AlphaCat Reinsurance.

Third party subscriptions and commitments represented 95 percent and 82 percent of the total funds raised in respect of the AlphaCat ILS Funds and AlphaCat 2015, respectively.

AlphaCat has fully deployed the funding called at January 1, 2015, representing 75 percent of the new AlphaCat ILS funding and 92 percent of AlphaCat 2015 funding. The remainder will be called and deployed throughout 2015.

AlphaCat will underwrite business for the AlphaCat ILS Funds and AlphaCat 2015.

Lixin Zeng, the chief executive officer of AlphaCat, said: “We are pleased with the strong level of investor support for the AlphaCat business and continued success in growing assets under management. The increased size of AlphaCat reflects well on the strength of Validus’ underwriting platform, the skill of our analytical team and the infrastructure we have developed to manage third party capital.”