Schroders acquires Secquaero Advisors in bid to dominate ILS

Schroders has taken full control of Secquaero Advisors in a move that strengthens its private assets business.

Schroders increased its stake in Secquaero Advisors to 100 percent, up from the 50.1 percent it had held since February 2016, saying it wanted to be a leading institutional provider of dedicated insurance linked securities (ILS) investment strategies.

Schroders acquired 30 percent of the business in 2013, while entering into a partnership to meet the growing demand for ILS from institutional investors. From June of that year, Secquaero has acted as Schroders exclusive advisor on ILS investment strategies.

Secquaero will now be fully integrated into the Schroders private assets business, which is based in Zurich and managed by Dirk Lohmann. The combined team managing ILS related strategies will operate within Schroder Investment Management (Switzerland), trading under the name Schroder Secquaero.

it offers a wide range of funds and bespoke mandates, from pure cat bond strategies to broader solutions, including private transactions and dedicated life only funds.

Andreas Markwalder, the CEO of Schroder Investment Management (Switzerland), said: “The combination of Secquaero’s specialist knowledge in the re-insurance and securitisation of insurance risks, matched with the global reach of the Schroders’ asset management distribution platform, led to the success of the partnership by providing a highly attractive offering to sophisticated investors seeking to invest in ILS strategies.”

Lohmann said: “ILS will continue to be a key contributor to Schroders private assets strategy. In a time where diversification and positive absolute returns are key, the investment case for ILS remains strong. Secquaero’s DNA, along with its market footprint and long-standing expertise, will be embedded within Schroders private assets.”