SageSure takes stake in Bermuda ILS manager Pillar Capital

SageSure has made a strategic investment in Pillar Capital Management, the Bermuda-based insurance-linked securities manager with more than $4 billion of institutional assets under management. The Royal Gazette Bermuda Re reported the transaction on 12 October. SageSure is a managing general underwriter focused on the property catastrophe reinsurance market.

Pillar will keep operating as an independent franchise and retain its Bermuda team and investment strategy. It will continue to be led by Stephen Velotti, its longtime chief executive and chief investment officer, and Tara Railton, its chief operating officer. Pillar's management team will continue to hold a substantial ownership stake. SageSure is an underwriting strategic rather than a rollup sponsor. The price and the size of SageSure's stake were not disclosed.

SageSure funded the investment by expanding an existing debt facility with Ares Management, described in the report as a longstanding capital partner. Howden Capital Markets & Advisory was exclusive financial adviser to SageSure on the transaction, and Evercore was exclusive financial adviser to Pillar. Willkie Farr & Gallagher LLP and Appleby served as SageSure's legal counsel.

SageSure said the investment adds Pillar's reinsurance risk underwriting capabilities and institutional investor relationships to its platform, strengthening its ability to connect underwriting expertise with a broader range of capital sources. "For nearly two decades, Pillar has built a world-class platform and deep relationships with global institutional investors through a relentless focus on strong technical underwriting and prudent risk management, two principles which are core to our ethos at SageSure," said Terrence McLean, SageSure's president and chief executive. "For those reasons, I believe the two organisations could not be a better fit as partners."

"While our core strategy, our team, and the way we serve our investor partners will remain unchanged, partnership with SageSure will further enhance our ability to access, evaluate, and manage catastrophe risk and allow us to continue delivering industry-leading results," Mr Velotti said.