Mitsui & Co. Ltd has agreed to provide $100 million to New Ocean Capital Management Limited‘s private fund platform on a multi-year basis. Also, as part of this deal, Mitsui has taken a 15 percent stake in New Ocean. A Mitsui representative will join New Ocean’s board of directors. XL Group Ltd will retain a majority stake in New Ocean, which is also backed by Stone Point Capital.
HAMILTON, Bermuda, Oct. 21, 2016 /PRNewswire/ — New Ocean Capital Management Limited (“New Ocean”), along with its major shareholders, XL Group Ltd (“XL”) and Stone Point Capital, has announced a newly formed strategic relationship with Mitsui & Co., Ltd. (“Mitsui”). Mitsui has committed an initial $100 million of proprietary investment capital to New Ocean’s private fund platform on a multi-year basis, and will endeavor to source additional capital by 2020.
As part of this strategic transaction, Mitsui also purchased a 15% stake in New Ocean from its existing shareholders. In addition a Mitsui representative will join the Board of New Ocean, alongside existing representatives from XL, Stone Point Capital, and Management. XL remains the majority shareholder in New Ocean.
Chris McKeown, CEO of New Ocean, commented: “We are delighted to welcome Mitsui as an investor and owner. Mitsui has invested with New Ocean since 2014, and the substantial commitment to our strategies as well as their ownership stake is validation of New Ocean’s unique platform. Mitsui’s commitment to New Ocean provides the ability to draw investor capital, over time, at key renewal dates in the reinsurance calendar, as opportunities present themselves. Mitsui is a bellwether investor with substantial global relations and reach, which we anticipate will bring substantial value to the continued growth of our business.”
Craig Wenzel, Head of Alternative Capital at XL, added: “Mitsui’s increased investment in New Ocean reflects the growth and development of the New Ocean platform and it’s gratifying to see such a high caliber corporate investor join the New Ocean family. New Ocean is a cornerstone to XL’s long-term commitment to alternative capital, which will increasingly become more relevant in our business going forward.”
Takashi Nakai, General Manager of Insurance Business Department at Mitsui, commented: “We are very excited to increase our investment with New Ocean and partnering with XL, Stone Point, and Management, to help New Ocean grow. We decided to grow our affiliation with New Ocean due to the experience and expertise of its investment team led by Chris McKeown, and its differentiated access to risk, which combines market-facing capabilities with an affiliation with XL and its substantial distribution network. At Mitsui, we are committed to building long-term businesses that will benefit Mitsui and other investors over time. For this reason, we are pleased to join New Ocean as a strategic investor, at a time when we believe ILS / reinsurance will become more appealing to institutional investors in Japan, and across the globe.”
About New Ocean Capital Management Limited
New Ocean Capital Management Limited is a Bermuda-based asset manager founded by XL and Stone Point Capital in 2013 to provide unique access to the traditional (re)insurance market, the collateralized reinsurance market and the reinsurance capital markets.
About Mitsui & Co. Ltd.
Mitsui & Co., Ltd. (“Mitsui”), founded in 1947, is one of the most diversified and comprehensive trading, investment and service enterprises in the world. Utilizing global operating locations, network and information resources, Mitsui is multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields: Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Integrated Transportation Systems, Chemicals, Energy, Food, Food & Retail Management, Healthcare & Service, Consumer Business, IT & Communication Business, Corporate Development Business.
About XL Group Ltd
XL Group Ltd (NYSE: XL), through its subsidiaries and under the XL Catlin brand, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. Clients look to XL Catlin for answers to their most complex risks and to help move their world forward. To learn more, visit www.xlgroup.com.
About Stone Point Capital LLC
Stone Point Capital LLC is a financial services-focused private equity firm based in Greenwich, CT. The firm has raised and managed six private equity funds – the Trident Funds – with aggregate committed capital of approximately $13 billion. Stone Point targets investments in the global financial services industry, including investments in companies that provide outsourced services to financial institutions, banks and depository institutions, asset management firms, insurance and reinsurance companies, insurance distribution and other insurance-related businesses, specialty lending and other credit opportunities, mortgage services companies and employee benefits and healthcare companies. For further information about Stone Point, see www.stonepoint.com.