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BTG Pactual targets ILS with Bermuda acquisition

BTG Pactual Asset Management has acquired Bermudian Insurance Linked Securities (ILS) manager Lutece Investment Management, sister publication Trading Risk has reported.

Lutece founders Erik Manning and Angus Ayliffe, as well as other members of the team, will now join the investment bank’s asset management division, remaining based in Bermuda.

BTG is now the sole owner of Lutece Investment Management, it confirmed to this publication. 

BTG Pactual Asset Management CEO Steve Jacobs said that the firm saw significant opportunities in the ILS sector.

“This exciting move will enable us to generate returns uncorrelated to traditional credit markets and existing revenue streams,” he added.

The reinsurance team plans to launch a low-volatility strategy this year, adding to its initial retro opportunities fund.

The new strategy will focus on senior and super-senior tranches of reinsurance regulatory capital.

The strategies will be seen by an investment committee comprising senior management from BTG Pactual and Lutece.

BTG Pactual said the reinsurance team will benefit from the firm’s scale, governance, risk management expertise and operational infrastructure as a result of the move.

The asset management company was the cornerstone investor in Lutece funds during its launch earlier this year, as Trading Risk previously revealed.

Lutece is believed to have raised as much as $250mn for its launch earlier this year.

It brought in former Brit executive Julia Henderson to the role of chief underwriting officer earlier this year, as Trading Risk reported.

BTG Pactual Asset Management has $49.5bn in assets under management.

The firm has previously invested in other reinsurers, including Aeolus in its days as a privately held carrier before it transformed into a fund manager.

It also held a 50 percent stake in Ariel Re from 2014 to 2017.

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