Hudson Structured Capital Management Ltd.(HSCM), undertaking its reinsurance investment business through the HSCM Bermuda unit, has raised $110 million to launch a new fund named HS Sawmill LP, that has been formed to acquire a seasoned portfolio of life insurance-linked securities (ILS).The company said the launch of the new life ILS fund, HS Sawmill, reflects its “continued focus in the life insurance sector, including bespoke and differentiated opportunities in insurance-linked structured credit.” Hudson Structured, through HSCM Bermuda, has been investing into life insurance and reinsurance linked opportunities under its ILS management activities since its inception, specialising in a wide range of capital provision and investment opportunities supporting life companies and risks.$110 million in capital commitments have been secured from institutional investors for the HS Sawmill fund, which will be used to buy up a seasoned life ILS portfolio, as well as additional follow-on reserves.

Presumably, being a seasoned life ILS portfolio, this is being acquired from an established ILS manager or investor in the space.It’s a good example of a rare secondaries transaction in the ILS market as well, with these not all that frequently seen but arrangements that can prove extremely valuable to enable liquidity for managers and investors under certain circumstances.HSCM further explained that some of its existing investors and new relationships have participated in the launch of this new life ILS focused investment fund, alongside commitments from the HSCM management team.

“HS Sawmill reflects our investment approach, emphasizing innovative and tailored solutions, to source, underwrite, and structure transactions designed to provide value to our stakeholders,” explained Gokul Sudarsana, Partner & Co-Chief Investment Officer of HSCM’s Insurance Strategy.Sudarsana further stated, “We are excited about the fund’s role in supporting development of secondary liquidity in the Life ILS asset class.Moreover, the transaction featured an entry point and differentiated capital structure that we believe was well-received by participating investors.” “This new offering will broaden and formalize our investing activities in premium financing, commission financing, and the broader asset-backed opportunity set in insurance, which we view as an area of growing activity,” added Vikas Singhal, Partner & Co-Chief Investment Officer of HSCM’s Insurance Strategy.

Proskauer Rose LLP served as HSCM’s legal counsel for this transaction..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.