Phoenix Merchant Partners, LP, a middle-market centered funding agency, has introduced the closing of its debut transaction, that funds a non-catastrophe P&C reinsurance firm named Gryphon Holdings, whereas additionally saying the rent of Julia Henderson as Managing Director, Insurance Solutions.
The association offers for the capitalization of Gryphon Holdings’ balance-sheet and funds the long run progress of its reinsurance program.
The deal includes a mixture of a delayed draw senior facility represented by a contingent capital be aware, and the issuance of desire shares, with phrases that may enable Phoenix and associated events to supply further progress financing over the course of the following a number of months, the corporate stated.
“We see significant unmet financing needs among unsponsored businesses in the middle market and believe our creativity, prudent approach to structure and focus on process uniquely position us to identify and execute on that differentiated opportunity set,” defined Art Mbanefo, Phoenix Founder, CEO and CIO. “We are excited to launch this part of our platform through our relationship with Gryphon, which provides testament to our ability to pivot and offer bespoke financing solutions that match company and industry dynamics.”
Gryphon Holdings may have a method centered on provision of non-catastrophe quota share property and casualty (P&C) reinsurance providers.
Houlihan Lokey will act as monetary advisor on the following levels of the deal, Phoenix stated.
“Art and the team at Phoenix have established well-deserved reputations as creative capital providers at a number of companies and across multiple geographies, this is not the first time we see them bring new innovations to the insurance market,” defined Arik Rashkes, Managing Director and Co-Head of Houlihan Lokey’s Financial Services Group. “We believe that this could be the first of many innovative financings by the Phoenix Merchant Partners platform that can help redefine how companies approach financing alternatives.”
Clifford Chance LLP and Sidley Austin LLP served as authorized counsel for Phoenix on the transaction.
It’s notable that Phoenix has additionally introduced the hiring of Julia Henderson, an govt with important reinsurance and insurance-linked securities (ILS) business expertise.
Henderson is ready to affix Phoenix as Managing Director, Insurance Solutions, efficient February 1st, the corporate stated.
Her most recent position was at Vesttoo, the place she labored as Chief Commercial Officer.
Before that, Henderson was President and Head of Portfolio Management at Stable Corporation, a know-how firm that gives an index-based platform for commodity hedging and utilises collateralized reinsurance strategies to herald a few of its capability, the place she stays on the board of administrators.
During her profession, Henderson has labored at main reinsurance business and ILS gamers together with RenaissanceRe, Nephila Capital, PartnerRe, Brit, and Bermuda-based retro ILS specialist Lutece.
Phoenix has additionally employed Adrian Macedo, who joins the corporate as Managing Director and Head of Investments, from his most recent function at ORIX USA.
In addition, Benjamin Weston has joined the Phoenix Advisory Board. He lately served as Global Head of Alternative Investments and Chief Investment Officer of the Alternatives Investments Department at Abu Dhabi Investment Authority (ADIA), a wealth fund that has invested in reinsurance and insurance-linked securities (ILS).
“Our people will always be our greatest asset, and the addition of these incredibly talented and highly-regarded professionals provide further testament to the opportunity we see for our platform,” Mbanefo stated. “In founding Phoenix, I set out to build a truly institutional business, and we have established an exceptional foundation of insight and experience from which to grow. We look forward to continuing to strategically expand our team and advisory board as we work with high quality companies and investment partners.”
In pursuing non-cat P&C reinsurance quota shares, it appears Gryphon Holdings will function in segments of the market the place Henderson’s earlier employer Vesttoo had been lively.
It’s not clear at the moment whether or not, as a reinsurer, Gryphon Holdings will observe a standard balance-sheet backed strategy, leverage third-party capital from traders and transact in a collateralized method, or maybe a hybrid of the 2.
