Friday, 27 May 2016
Last updated 16 hours ago
Apr 25 2014 | 10:06am ET
Pine River Capital Management’s road to joining the reinsurance business is proving a winding one.
The hedge fund hopes to join the likes of Third Point and Greenlight Capital with an affiliated reinsurer that will invest its premiums with Pine River. The firm initially sought to buy SAC Capital Advisors’ reinsurer, but the unit ultimately went to Two Sigma Investments.
Pine River then tried the next best thing, hiring SAC Re’s former chairman, Ken LeStrange, to lead its Pine River Re. But that arrangement has soured, as well, with both LeStrange and Pine River Re CEO Bill Jewett leaving the firm.
Pine River is now working with Allied World Assurance to establish its $750 million company.