January 14, 2021
Convex Group Raises $500 Million in Preferred Equity from Sixth Street
Convex Group Limited (“Convex” or “the Company”) has secured $500 million in committed preferred equity capital from affiliates of Sixth Street, a leading global investment firm. The investment follows Convex’s recent $1 billion capital raise from a consortium led by Onex and GIC, in which Sixth Street also participated. Sixth Street’s investment brings Convex’s total committed capital to over $3.2 billion.
Convex is a specialty insurer and reinsurer focused on complex risks, that launched with $1.7 billion of committed capital in April of 2019. Convex underwrites insurance and reinsurance across a diverse range of business lines including aerospace, casualty, energy, marine, property and other lines of business. The company is led by Stephen Catlin, Paul Brand and a team of well-respected insurance industry experts.
Sixth Street is a global investment firm with over $50 billion in assets under management. Sixth Street is an active global investor in insurance and reinsurance businesses through its $24 billion Sixth Street TAO platform.
Stephen Catlin, CEO of Convex, said: “We are pleased to be partnering with the Sixth Street team to strengthen our position even further in today’s cyclically advantageous market environment. This significant additional capital provides us with greater flexibility as we continue our recent momentum in growing our business.”
A. Michael Muscolino, Co-Founder and Partner of Sixth Street, said: “With an exceptional track record and disciplined team of underwriters, Convex is uniquely positioned to pursue opportunities made available by a hardening market. Our cross-border financials investing franchise is pleased to be supporting Convex management alongside their impressive existing institutional investor base, and we look forward to our long-term partnership.”
JP Morgan and Evercore acted as financial advisors and Slaughter and May and Appleby acted as legal advisors to Convex. Goldman Sachs acted as financial advisor and Willkie Farr & Gallagher LLP and Conyers acted as legal advisors to Sixth Street.
Convex Group is an international specialty insurer and reinsurer focused on complex specialty risks across a diverse range of business lines. The company brings together best in class talent, a diversity of thought and the freedom and independence of a strong balance sheet to create a fresh approach to business. The Group’s ambition is to offer something different to its clients and to engage with them in a true partnership based on fairness, dignity and respect. Convex was founded by Stephen Catlin and Paul Brand and operates out of London and Bermuda. The company has an “A-“ (Excellent) A.M. Best rating and an “A-“ with stable outlook S&P rating.