Loeb's Third Point eyes 2013 IPO for reinsurance arm: sources
May 6 (Reuters) - Third Point, the $11.6 billion hedge fund run by billionaire Dan Loeb, has hired banks for an initial public offering of its reinsurer business, according to three sources familiar with the matter.
Bermuda-based Third Point Re is working with Morgan Stanley , Credit Suisse AG and JPMorgan Chase & Co on a public float that could raise around $250 million later this year, the sources said.
Morgan Stanley, JPMorgan and Credit Suisse declined to comment. Third Point could not be reached for comment.
Reinsurers act essentially as insurance for insurance companies.
Third Point launched its reinsurer arm last year with $750 million in capital. The company is led by prominent industry executive John Berger, who was the former CEO of Alterra Capital Holding Ltd's reinsurance business.
Besides Loeb, other hedge fund managers have also made plays in the reinsurance space as a way to capitalize on rising rates after natural disaster losses and to provide their funds with another source of investment capital.
David Einhorn's Greenlight Capital set up Greenlight Capital Re Ltd in the Cayman Islands in 2004, and went public in 2007, raising $258 million in its IPO. Steven Cohen's SAC Capital Advisors created a Bermuda-based reinsurer arm last year.
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