Catlin Group Ltd. is seeking to secure $150 million in retrocessional capacity through a new sidecar-style special-purpose vehicle, market sources confirmed Wednesday. The facility, Long Bay Re Ltd., is a Bermuda-based Class 3 reinsurer designed to provide fully collateralized reinsurance capacity for a portion of Hamilton, Bermuda-based Catlin's catastrophe risk portfolio, sources said. Unlike traditional sidecars, there is no expiration date on the vehicle. Long Bay plans to raise the capital in an initial public offering on the London Stock Exchange's alternative investment market, the exchange's market for smaller growth companies, sources said. Long Bay Re will be managed by Horseshoe Management Ltd., a Bermuda-based insurance manager, sources said. Deutsche Bank A.G.'s London branch is arranging Long Bay Re, according to an investor presentation. If successful, it will be the first transaction under Deutsche Bank's recently established evergreen shelf program, which is an equity-based insurance-linked securities instrument that seeks to provide insurers and reinsurers with an alternative to catastrophe bonds and traditional sidecars, sources said. Initially, Catlin is seeking coverage primarily for its U.S. hurricane exposures, although it may seek to use the vehicle for protection against additional perils in the future, sources say. The transaction is expected to close next month. A spokesperson from Catlin did not immediately respond to a request for comment.