CPE News (11/17/2020) – Convex Group Limited has secured US $1 billion in new capital led by Onex Corporation (TSX: ONEX) and Onex Partners V, and GIC.
Founded by Stephen Catlin and Paul Brand, London, UK based Convex is a specialty insurer and reinsurer focused on complex risks that launched with US $1.7 billion of committed capital in April of 2019. Convex’ initial invested capital was raised from the Convex management team, Onex Partners V, PSP Investments and a consortium of co-investors.
The additional capital has been committed by the original investors and a new group of investors led by GIC.
The Onex Group committed US $300 million, including US $200 million from Onex Partners V.
photo credit: Convex Group
News Release
– Convex Group Raises $1 Billion of Additional Capital –
– Convex is Well-Positioned to Capitalize on Insurance Market Opportunity –
Toronto, November 17,2020 – Onex Corporation (“Onex”) (TSX: ONEX) and its affiliated funds (the “Onex Group”), along with GIC, announced that they and a consortium of existing and new co-investors have committed to invest $1 billion in Convex Group Limited (“Convex”or the“Company”).This capital raise is subject to customary regulatory approvals.
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’ initial invested capital was raised from the Convex management team, Onex Partners V, PSP Investments and a consortium of co-investors.
The additional capital has been committed by the original investors as well as multiple new investors led by GIC.
Bobby Le Blanc, President of Onex and Head of Onex Partners, commented, “Over the past eighteen months, the Convex management team has made significant progress in realizing our original investment thesis, having successfully executed on its recruiting plan, implemented key operational systems and processes, established strong relationships with brokers, and written over$1 billion in premiums. This momentum, coupled with the favorable P&C insurance market conditions, have further improved the risk-adjusted return opportunity and make us confident in the continued success of the business.”
Stephen Catlin, CEO of Convex, said, “Onex and our existing investor base have provided us with tremendous support in building the business and we welcome the new investor partners, including GIC. We are delighted to have additional capital as this will enable us to take full advantage of the hardening market.”
Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC, said, “GIC is pleased to partner with Stephen, Paul, and the rest of the Convex team given their tremendous success to date and long track record of disciplined underwriting. We believe that Convex’ unique value proposition within complex risk is well-suited for the current market environment. As a long-term investor, we look forward to working alongside Onex and other shareholders to support the Company as it embarks on its next phase of growth.”
Martin Longchamps, Managing Director, Private Equity at PSP Investments, said, “We are pleased to continue our successful partnership with Onex and Convex by supporting the Company’s accelerated growth strategy. The Convex management team has established an agile, world-class specialty insurer with a strong operational foundation. This transaction is in line with our strategy of making sizeable, direct investments in high-quality companies alongside experienced partners.”
The capital raise includes more than $300 million from the Onex Group, including $200 million from Onex Partners V.
About Convex
Convex Group is a specialty insurer and reinsurer focused on complex risks founded by Stephen Catlin and Paul Brand. With operations in London and Bermuda, Convex occupies a unique position in the insurance industry and combines unrivalled experience, reputation and lessons learned with the freedom and independence of a new balance sheet.
About Onex
Founded in 1984, Onex invests and manages capital on behalf of its shareholders, institutional fainvestors and high net worth clients from around the world. Onex’ platforms include: Onex Partners, private equity funds focused on larger opportunities in North America and Europe; ONCAP, private equity funds focused on middle market and smaller opportunities in North America; Onex Credit, which manages primarily non-investment grade debt through collateralized loan obligations, senior loan strategies and other private credit strategies; and Gluskin Sheff’s wealth management services including its actively managed public equity and public credit funds. In total, Onex has approximately $36.6 billion of assets under management, of which approximately $6.7 billion is its own shareholder capital. With offices in Toronto, New York, New Jersey and London, Onex and its experienced management teams are collectively the largest investors across Onex’ platforms.
The Onex Partners and ONCAP businesses have assets of $36 billion, generate annual revenues of $22 billion and employ approximately 149,000 people worldwide. Onex shares trade on the Toronto Stock Exchange under the stock symbol ONEX. For more information on Onex, visit its website at www.onex.com. Onex’ security filings can also be accessed at www.sedar.com.
For further information:
Jill Homenuk
Managing Director, Shareholder Relations and Communications
Tel: 416.362.7711