Ariel Re Capital Partners completes first fund-raise, using London Bridge 2 transformer

Ariel Re Capital Partners (ARCP), the third-party capital management platform established by global reinsurance company Ariel Re in 2024, has now completed its first capital raise and utilised the Lloyd’s ILS transformer London Bridge 2 to channel the funding to its business.

Ariel Re has not disclosed the amount of third-party capital raised, but did say that this initial tranche of investment will provide roughly 10% of the capital supporting the 2025 Year of Account for the firm.

Ariel Re established the entity named Ariel Re Capital Partners in 2024, as we reported at the time.

Ariel Re was no stranger to the use of third-party capital and insurance-linked securities (ILS) within its business, having leveraged relationships with capital markets investors within aligned risk-sharing relationships and its retrocession program for many years, while also being a catastrophe bond sponsor.

Ariel Re Capital Partners was the first formalised third-party capital initiative from the company and the co-mingled fund strategy it offers to investors appears to have been well-received.

Ariel Re explained today that its ARCP strategy “simplify the process for smaller investors accessing Lloyd’s of London, removing the requirement to establish a Lloyd’s Corporate Member.”

Adding that, “The comingled fund allows investors such as smaller funds, family offices and ultra-high net worth individuals, to invest $5 million and upwards into Lloyd’s’ risk through Ariel Re’s Syndicate 1910.”

ARCP used Lloyd’s UK insurance-linked securities (ILS0 structure, the London Bridge 2 transformer vehicle, to channel the funding into the market and closed this first round of fund raising in December 2024, after attracting its first tranche of investors.

The reinsurance firm is no stranger to the London Bridge ILS platform either, having used it to channel funding to its syndicate in 2023.

Henry Paddison, Head of Capital Development & Investor Relations, Ariel Re, commented, “ARCP was designed to simplify the investment process for smaller investors looking to access the Lloyd’s market, specifically, Ariel Re’s Syndicate 1910. We believe ARCP is a great opportunity for smaller investors looking to diversify their portfolios, and we are delighted to have successfully closed its first capital raise.

“Ariel Re is a best-in-class underwriter, and ARCP enables us to attract a wider range of potential investors to our business. There has been strong investor interest in the first capital raise, and we are confident that ARCP will provide Ariel Re with a growing source of multi-year capital in the years to come.”

Burkhard Keese, the soon to depart Chief Financial Officer of Lloyd’s, added, “We’re pleased to see Ariel Re, as an early participant of the London Bridge 2 platform, demonstrating innovation by developing this new fund to allow smaller institutional investors to support the growth of Syndicate 1910. This fund raise demonstrates how London Bridge 2 can be used to expand and diversify sources of capital by tapping into a larger investment pool.”