The third-party capital vehicle launched last year by Bermudian-based Ariel Re has successfully completed its first fund-raise.

The company said Ariel Re Capital Partners platform was launched to give access to Ariel Re’s market-leading returns and simplify the process for smaller investors accessing Lloyd’s of London, removing the requirement to establish a Lloyd’s corporate member.

Ariel Re said the co-mingled fund allows investors such as smaller funds, family offices and ultra-high-net-worth individuals, to invest $5 million and upwards in Lloyd’s risk through Ariel Re’s Syndicate 1910.

The company confirmed that ARCP, which has used Lloyd’s pioneering London Bridge 2 transformer vehicle that is designed to attract alternative capital into the market, closed in December after attracting its first tranche of investors.

ARCP will provide Ariel Re with a multiyear source of capital. Ariel Re did not disclose the amount of money raised, but said the initial investment will provide approximately 10 per cent of the capital supporting the 2025 year of account.

Henry Paddison, head of capital development and investor relations at Ariel Re, said: “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.”

He added: “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 multiyear capital in the years to come.”

Burkhard Keese, chief financial officer of Lloyd’s, said: “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.”