Catlin’s Convex Group Raises Capital of $500 Million

Convex Group Ltd. has secured $500 million in committed preferred equity capital from affiliates of Sixth Street, a leading global investment firm. The investment follows Convex’s recent $1 billion capital raise from a consortium led by Onex and GIC, in which Sixth Street also participated.

Sixth Street’s investment brings Convex’s total committed capital to over $3.2 billion.

A London-headquartered specialty insurer and reinsurer, Convex launched with $1.7 billion of committed capital in April 2019. Convex underwrites insurance and reinsurance across a diverse range of business lines including aerospace, casualty, energy, marine, property and other lines of business.

The company is led by Stephen Catlin, Paul Brand and a team of well-respected insurance industry experts.

San Francisco-based Sixth Street is a global investment firm with over $50 billion in assets under management. Sixth Street is an active global investor in insurance and reinsurance businesses through its $24 billion Sixth Street TAO platform.

“We are pleased to be partnering with the Sixth Street team to strengthen our position even further in today’s cyclically advantageous market environment. This significant additional capital provides us with greater flexibility as we continue our recent momentum in growing our business,” said Stephen Catlin, CEO of Convex.

“With an exceptional track record and disciplined team of underwriters, Convex is uniquely positioned to pursue opportunities made available by a hardening market,” commented A. Michael Muscolino, co-founder and partner of Sixth Street.

“Our cross-border financials investing franchise is pleased to be supporting Convex management alongside their impressive existing institutional investor base, and we look forward to our long-term partnership,” he added.

JP Morgan and Evercore acted as financial advisers and Slaughter and May and Appleby acted as legal advisers to Convex. Goldman Sachs acted as financial adviser and Willkie Farr & Gallagher LLP and Conyers acted as legal advisers to Sixth Street.

Source: Convex and Sixth Street