Neuberger Berman Expands ILS Platform with Purchase of Cartesian Re, Iris Re

By | November 2, 2018

Investment manager Neuberger Berman Group has acquired an asset manager and an affiliated reinsurer, which manage funds of more than $1 billion and focus on insurance-linked strategies.

New York-based Cartesian Re and its Bermuda affiliate Iris Re were purchased from Cartesian Capital Group for an undisclosed amount.

Neuberger Berman said the acquisition has broadened its alternative investment platform, which aims to provide returns uncorrelated with financial markets.

Capital market investors perceive diversification and non-correlation with financial asset classes as key drivers to participate in ILS, said a recent report published by Willis Towers Watson. Ultimately, these funds provide natural catastrophe reinsurance protection via insurance linked securities (ILS), supported by capacity from capital markets’ investors.

Cartesian Re will be renamed NB Insurance-Linked Strategies and its affiliated Bermuda reinsurer, Iris Re, will be renamed NB Reinsurance Ltd.

Cartesian Re provides Neuberger Berman with a diverse group of institutional clients and an experienced investment team, which has produced a long-term track record driven by a proprietary investment process and sophisticated quantitative analytics, said Neuberger Berman in a statement.

Cartesian Capital Group founded Cartesian Re in 2009 as an ILS manager focused on industry-loss warranties. Led by Managing Partner Peter Yu, Cartesian Capital Group is a global private equity firm with $3 billion in committed assets under management.

All of Cartesian Re’s team, including Managing Directors Peter DiFiore, Cedric Drui and Charles Mixon, have joined Neuberger Berman and will continue to serve in their current roles.

“The investment team from Cartesian Re brings to our clients an established track record from unique investments that are not correlated with traditional asset classes,” affirmed Tony Tutrone, head of Alternatives, Neuberger Berman.

Sandler O’Neill + Partners, L.P. acted as financial adviser to Cartesian Capital Group and Kirkland & Ellis served as legal advisor. Willkie Farr acted as legal adviser to Neuberger Berman.

About Neuberger Berman

Neuberger Berman, founded in 1939, is a New York-based private, independent, employee-owned investment manager. With offices in 20 countries, the firm manages investment strategies – including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds – on behalf of institutions, advisers and individual investors.

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