Jan 23 Private equity company KKR & Co LP
said on Wednesday it acquired a 24.9 percent stake in
Nephila Capital Ltd, an investment management firm that focuses
on natural catastrophe and weather risk.
Terms of the deal were not disclosed. KKR obtained shares
from Nephila's management as well as from hedge fund manager Man
Group Plc, which retained an 18.75 percent stake in the
The move comes as KKR, best known for its corporate buyouts,
pushes further into asset management. Last June, KKR acquired
Prisma Capital Partners, an investment firm focused on hedge
Nephila, based in Bermuda, invests in insurance-linked
securities, catastrophe bonds and weather derivatives.
The company was founded in 1998 as part of London-based
Willis Ltd, a reinsurance broker that was a former KKR portfolio
company. Nephila has around $8 billion in assets under
Reinsurance, in traditional forms and in alternative areas
like insurance-linked securities, has become an attractive
investment for hedge funds and pension plans in recent years.
Because the sector is not correlated with broader financial
markets, there is an opportunity to earn decent returns even in
tough financial times.