White Mountains Insurance Group has acquired a minority equity stake in Elementum Advisors, an SEC-registered investment advisor focused on managing investment portfolios exposed to natural catastrophe event risk.
The terms were not disclosed, but White Mountains has committed to invest $50m across Elementum's funds. Elementum's principals retain majority ownership of the company, and will control the operation of the business.
Tony Rettino and John DeCaro, Elementum’s founding principals, said the deal would "enable us to continue to provide high quality investment management services to our investors and fortify our business operations and franchise."
Elementum was launched in December 2009 and manages portfolios across a range of liquidity and risk/return profiles, including catastrophe bonds and collateralized reinsurance investments. It is the third largest independent manager of ILS, with over $4bn of assets currently under management.
Cravath, Swaine & Moore provided legal advice to White Mountains, while Kirkland & Ellis acted as legal advisor. TigerRisk Capital Markets & Advisory acted as financial advisor to Elementum.
White Mountains Insurance, Elementum Advisors, Catastrophe, Bermuda