Harvard Private Capital Group and Insurance Partners L.P. agreed to pump 88 million ($137 million) into underwriting insurance risks at Lloyd's of London.
The commitments to a new limited liability corporate syndicate represent the first major U.S. institutional investments in Lloyd's.
Under the agreement, Syndicate 2488 will operate alongside of Syndicate 488, an unlimited liability vehicle managed by Charman Group Ltd. Together they will have combined underwriting capacity of 300 million. The syndicates will specialize in underwriting energy, maritime and aviation insurance.
In addition, the U.S. investors have agreed to purchase 25% of Charman Group, the maximum allowed under Lloyd's rules.
Harvard Private Capital Group, Boston, manages $1.4 billion in private investments. It is a wholly owned subsidiary of Harvard Management Co., which manages the $7 billion university endowment fund. Insurance Partners, New York, is a $540 million equity investment fund whose investors include Centre Re, a unit of Zurich Insurance; Chase Manhattan Bank; Robert M. Bass Group's Keystone vehicle; and other institutional investors.