Northill Capital agreed to buy a majority stake in Securis Investment Partners, a London-based money manager specializing in insurance-linked securities with about $1.1 billion in assets under management, said Jonathan Little, Northill Capital partner.
Terms were not disclosed.
The transaction is Northill's fifth and largest deal since it was established in November 2010 to invest in a portfolio of asset managers, said Mr. Little, former vice chairman of BNY Mellon Asset Management before launching Northill.
“We like businesses that are focused on producing pure alpha, that are specialists in one asset class and one style of investing,” Mr. Little said a telephone interview. “Securis fits.”
Securis reported returns of 4.06% in 2011, 8.01% in 2010 and 13.43% in 2009, according to data from Securis.
“A lot of investors are looking for non-correlated returns,” Mr. Little said, “and if you look at insurance-linked securities, there's almost no correlation to traditional bonds and equities.”
Mr. Little said he initially met Securis founders Rob Procter and Espen Nordhus in 2005 while Mr. Little was at BNY Mellon. Messrs. Procter and Nordhus remain at Securis as co-managing partners.
“We got to talking again last autumn,” Mr. Little said. The deal quickly fell into place under “what was a nice set of circumstances” when Northill agreed to buy out the interests of Securis' external partners, Swiss Re and Stone Point Capital.
“We had already known each other quite well, and the trust had been built up over the years,” Mr. Little added.
The transaction is expected to close later this week.