11 June 2015
Clifford Chance advises on launch of Fidelis Insurance; Initial capital raise of approximately US$1.5 billion one of the largest ever
Clifford Chance has advised on the formation of Fidelis Insurance Holdings Limited, a newly-created specialty insurance and reinsurance company that will employ a novel hybrid investment model. The company's equity capital raise of approximately US $1.5 billion marks one of the largest insurance industry capital raises ever and positions Fidelis as an important new underwriter in the global market.
Fidelis' innovative structure combines a diversified multi-line reinsurance business with an alternative investment strategy, allowing the company to shift capital and risk between insurance and investments to maximize shareholders returns. It is one of the first alternative capital insurers or reinsurers to utilize the model.
Private equity firms Crestview Partners, CVC Capital Partners, and Pine Brook invested a combined $650 million as Fidelis' founding investors, with the remainder of the capital coming from individual and institutional investors. The company will manage its investment portfolio under the direction of its Investment Committee, working with advisor Goldman Sachs Alternative Investments & Manager Selection Group.
Clifford Chance partner Gary Boss led the team advising Fidelis. Partners Anand Saha and Per Chilstrom provided securities and corporate advice. Donald Carden and Mike Seaton advised on tax matters. Dean Agnos and John Kelley led the associate team.
The Clifford Chance team has established itself as the market leader in alternative capital reinsurance ventures with its prior representation of Watford Holdings Ltd. and current representations on alternative capital reinsurers for leading global insurers and asset managers.