Alts.-Founded Reinsurers Max Capital, Harbor Point In Tie-Up

Mar 5 2010 | 2:51am ET

A pair of reinsurers backed by alternative investment firms have agreed to merge. Max Capital Group, co-founded by Moore Capital Management founder Louis Bacon, and Harbor Point, backed by private equity firm Stone Point Capital, will form Alterra Capital Holdings.

Moore—the largest shareholder of Max Capital—and Harbor Point have agreed to vote their shares in favor of the deal.

Alterra, which will have a book value of $3.5 billion, will trade on the Nasdaq Stock Market. Harbor Point shareholders will own 52% of the combined firm, and Max Capital shareholders 48%.

Alterra will pay a $300 million special cash dividend when the deal closes.

Stone Point helped set up Harbor Point with the insurer Chubb Corp. in 2005. Chubb wanted to spin-off its reinsurance business following huge losses suffered due to Hurricane Katrina and other natural disasters. Stone Point’s Trident III Fund invested $200 million in Stone Point.

Bacon helped co-found Max Capital in 1999.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…