Twelve Capital and Securis Announce New Major Merger

Twelve Capital and Securis Investment Partners have announced their decision to merge, forming a leading independent asset management entity in the Insurance-Linked Securities (ILS) sector. Pending regulatory approvals, effective in the fourth quarter of 2024, this merger is set to create one of the largest and most experienced ILS managers globally, with assets under management totalling USD 7.8 billion.

Strategic Rationale

The merger aims to consolidate the strengths of both firms, combining talent, assets, and infrastructure. Urs Ramseier, Co-Founder of Twelve Capital and newly appointed CEO of the combined entity, stated, “The coming together of our businesses will unlock significant innovation potential and enable a wider range of ILS solutions to be delivered to a truly global investor base.” This merger is seen as a strategic move to enhance investment capabilities and market access, driven by complementary investment-driven cultures and expertise from both firms.

Leadership and Global Presence

The newly formed entity will be led by Urs Ramseier as CEO, with Herbie Lloyd of Securis as CIO. Christoph Buerer, Co-Founder of Twelve Capital, will serve as President, while Etienne Schwartz will become CIO of Liquid Securities. The global team will operate from offices in London, Zurich, Munich, Tokyo, and Bermuda, ensuring a strong international presence.

Shareholder and Stakeholder Commitment

Both sets of shareholders are fully invested in the new business. B-FLEXION, a long-term backer of Securis, will continue its support. Cyrus Jilla, Group Managing Partner at B-FLEXION, remarked, “Our people and our combined client base will have access to additional complementary resources and expertise.” The new firm’s ongoing independence and ownership stability are key factors for ensuring consistency and continuity in its client-centric investment approach.

Market Position and Innovation Potential

The merger positions the new entity favourably to meet growing investor demand for a diverse range of ILS strategies and products. With enhanced investment capabilities and market access, the combined firm is expected to drive significant innovation in the ILS sector. Herbie Lloyd highlighted the benefits: “Our combined resources, global scale, and continued independence mean that we can bring enhanced investment expertise and a broader range of product solutions to our current and future clients.”

Conclusion

The merger of Twelve Capital and Securis Investment Partners marks a significant development in the ILS market, creating a leading, independent asset management firm with a robust global presence and enhanced capabilities. The transaction is expected to be completed by the end of 2024, subject to customary regulatory approvals, setting the stage for a new era of growth and innovation in the ILS sector.