Investcorp introduces investment management service for insurers

Bahrain-based alternative asset manager is seeking to expand its portfolio of offerings

Investcorp, the alternative asset manager that lists Mubadala Investment Company as its biggest shareholder, has launched a new business that will provide investment management services to insurers as it seeks to diversify its portfolio.

The Bahrain-based company appointed Todd Fonner as chief investment officer of its Investcorp Insurance Solutions platform, it said on Wednesday.

“The formation of Investcorp Insurance Solutions is a milestone for us and aligns with our strategy of continuing to expand our suite of offerings to meet the evolving needs of our clients,” said Mohammed Alardhi, executive chairman of Investcorp.

“Our deep experience and knowledge across a broad range of alternative asset classes and strategies makes us an ideal partner to insurers who are increasingly allocating to private investments as an important source of alpha in today’s environment.”

Investcorp had assets worth $37 billion under management as of June 30 and continues to boost its investments around the globe. It made five new private equity investments in the US and Europe, two add-on acquisitions and 11 investments in businesses across Asia in the 12 months to the end of June.

The company, which is planning a rapid expansion in its GCC and Asian portfolio of investments, expects its assets under management to more than double to $100bn in the medium term, Mr Alardhi said last month.

The asset manager also plans to double its private equity investments in India as it looks to grow its portfolio in Asia’s third-largest economy, a senior company executive said in an interview earlier this month.

Our deep experience and knowledge across a broad range of alternative asset classes and strategies makes us an ideal partner to insurers
Mohammed Alardhi, executive chairman, Investcorp

With more than 28 years of experience in the insurance and asset management industries, Mr Fonner has held a variety of roles across functions including investments, treasury, enterprise risk, underwriting and strategy, the company said.

Most recently, he served as senior managing director and CIO for North America with Blackstone Insurance Solutions until 2020. He also held CIO, treasurer and chief risk officer roles at RenaissanceRe Holdings, where he spent nearly 15 years, according to the statement from Investcorp.

“I believe the deep experience he brings within the insurance and asset management industries will be critical to our success in building out this new business,” said Rishi Kapoor, co-chief executive of Investcorp.

The insurance industry continues to seek exposure to alternative investment strategies and Investcorp is well-positioned through its strong track record of investing across asset classes to bring innovative solutions to the market, Mr Fonner said.

Updated: October 20th 2021, 2:41 PM