Global Bankers Insurance Group is the previously undisclosed buyer of assets from the Beechwood family of reinsurance and asset management companies, a person familiar with the matter told Reuters.
The recent purchase by Global Bankers – a $3.5-billion, Durham, North Carolina-based subsidiary of conglomerate Eli Global LLC – was bound by a confidentiality agreement so its name would not be revealed, said the same person, who requested anonymity because the information is private.
Beechwood, which once managed $2.4 billion, lost clients and suffered a bruised reputation when hedge fund manager Platinum Partners collapsed under federal investigations and fraud charges. Beechwood and Platinum were bound by social and family links to staff and start-up money.
The purchase of select assets included Beechwood Bermuda Investment Holdings Ltd, which issues wealth management products, and Beechwood OMNIA Ltd, which offers international investment plans, according to a second person familiar with the transaction who also requested anonymity. Beechwood’s portfolio of companies were based in Bermuda, the Cayman Islands and New York.
The deal does not include the assumption of legal liabilities, according to the first source. Beechwood and some of its executives face Platinum-related lawsuits from subsidiaries of CNO Financial Group and a trustee for defunct oil and gas producer Black Elk Energy Offshore Operations LLC.
Beechwood’s Chief Executive Officer Mark Feuer and Oresident Scott are not joining Global Bankers, according to both sources. Feuer and Taylor did not respond to an email seeking comment.
Scott Boug, Global Bankers’ chief actuary, is leading a new endeavor with Beechwood’s assets, according to one of the sources. Boug did not immediately respond to an email request for comment.
The Beechwood deal is part of Global Bankers’ acquisition-led expansion under Paul Brown, who was hired as head of capital and mergers & acquisitions in September 2016. Other recent purchases include Dutch life insurance company Nederlandse Algemeene Maatschappij van Levensverzekeringen Conservatrix NV, NN Life Luxembourg SA, Cincinnati Equitable Companies Inc., Pavonia Holdings (US) Inc. and Bankers Life Insurance Co.
- Reinsurer Beechwood Seeks Buyer in Wake of Backlash Over Platinum Ties: Reuters
- CNO Financial Ends Ties with Beechwood Re, Sues Over Hedge Fund Exposure
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