�Si­mone Fox­man and Son­ali Basak

Bloomberg Businessweek (North America) - - Markets / Finance -

$1.5 bil­lion to help cre­ate an in­surer it plans to take pub­lic, ac­cord­ing to a mar­ket­ing doc­u­ment ob­tained by Bloomberg. Howard Marks’s Oak­tree Cap­i­tal Group re­cently raised about $600 mil­lion to start an in­surance ven­ture.

At the same time, in­vestor in­ter­est in the com­pa­nies may be wan­ing. Gold­man Sachs fell $500 mil­lion short of its max­i­mum fundrais­ing tar­get. Robert Bredahl, Third Point Re’s chief op­er­at­ing of­fi­cer, told in­vestors in Septem­ber that he’s not hope­ful for an im­me­di­ate rein­sur­ance in­dus­try re­bound. Given such con­cerns, “you’re prob­a­bly not go­ing to see vast amounts of new in­vestor in­ter­est in the model,” says Meyer Shields, an an­a­lyst with Keefe, Bruyette & Woods.

Some still see an op­por­tu­nity for pa­tient in­vestors—as long as the hedge fund man­agers de­liver strong re­turns. “In one or two years of good earn­ings on the in­vest­ing side,” says Ken Billings­ley, an an­a­lyst at Com­pass Point Re­search & Trad­ing, “they could make up for three or four years of un­der­per­for­mance.”

The bot­tom line In­vestors look­ing for a way to have Dan Loeb in­vest for them can buy Third Point Re. But they may not get Loeb’s re­turns. When Rivera ap­plied to Merid­ian for a mort­gage, it asked for her credit rat­ing, util­ity bills, proof of res­i­dency, and her di­ploma

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