Neuberger Berman’s Acquisition of Cartesian Re And Affiliated Reinsurer Iris Re


The terms of the transaction were not disclosed. Sandler O’Neill + Partners, L.P. acted as financial advisor to Cartesian Capital Group and Kirkland & Ellis served as legal advisor. Willkie Farr acted as legal advisor to Neuberger Berman.

Neuberger Berman has broadened its alternative investment platform through the acquisition of specialist asset manager Cartesian Re, which with its affiliate Iris Re, manages more than $1 billion in assets under management (AUM) focusing on the insurance-linked strategies (ILS) asset class.

Cartesian Re was developed as a portfolio company of Cartesian Capital Group, which will work with Neuberger Berman to deliver ILS capabilities to clients globally. The addition of Cartesian Re illustrates Neuberger Berman’s continued focus on diversifying its alternative capabilities, particularly with strategies offering returns uncorrelated with financial markets. Cartesian Re will be renamed NB Insurance-Linked Strategies and its affiliated Bermuda reinsurer, Iris Re, will be renamed NB Reinsurance Ltd.

Led by Managing Partner Peter Yu, Cartesian Capital Group is a global private equity firm with $3 billion in committed AUM. In 2009, Cartesian Capital Group founded Cartesian Re as an ILS manager focused on industry-loss warranties, and has grown the firm consistently for nine years. Since its inception, Cartesian Re has consistently sought investment returns that are uncorrelated with traditional asset classes, while providing investors with greater transparency and less counterparty risk than other traditional insurance-related strategies.

Cartesian Re brings to Neuberger Berman a diverse group of institutional clients and an experienced investment team, which has produced a long-term track record driven by a proprietary investment process and sophisticated quantitative analytics. All Cartesian Re professionals, including Managing Directors Peter DiFiore, Cedric Drui and Charles Mixon, have joined Neuberger Berman and will continue to serve in their current roles. Neuberger Berman and Cartesian Capital Group have taken great care to preserve continuity in Cartesian Re’s investment management, investment philosophy, strategy and operations.

Willkie advised investment manager Neuberger Berman with a team including Gregory Astrachan (Picture), partners Bradley Friedman and James Silk

.

Involved fees earner: Gregory Astrachan – Willkie Farr & Gallagher; Bradley Friedman – Willkie Farr & Gallagher; James Silk – Willkie Farr & Gallagher;

Law Firms: Willkie Farr & Gallagher;

Clients: Neuberger Berman;