SAC Reinsurer Sold

Dec 10 2013 | 1:31pm ET

SAC Capital Advisors has agreed to sell its reinsurance business to a group of investors led by industry veteran Brian Duperreault and quantitative hedge fund Two Sigma Investments.

The group will pay between $500 million and $1 billion for Bermuda-based SAC Re, which will be renamed Hamilton Re when the deal closes. Duperreault, the former Marsh & McLennan CEO, will succeed Simon Burton as the reinsurer's CEO, while Two Sigma will effectively take over for SAC, investing the firm's premiums.

Two Sigma may also help assess and price risk for the reinsurer.

Capital Z Partners Management, the private-equity firm that helped set up SAC Re two years ago, will remain an investor. Performance Equity Management and several institutional investors are also part of the Duperreault-led group.

"This provides clarity for our clients and our regulators and we are confident Hamilton has a bright future ahead," SAC Re CFO Jonathan Reiss said.

SAC is selling the reinsurer following its guilty plea on insider-trading charges last month. As part of a deal with prosecutors, the firm has agreed to stop managing outside capital—such as that provided by SAC Re, which was set up as a permanent capital vehicle for the hedge fund.

"We are proud of our role in founding SAC Re, but we are now focusing on our transition to a family office and our core investing business," SAC said.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of