and other equity investments in the financial services industry in the US and Bermuda markets.

The Inter-Atlantic Fund, L.P. is being formed as a Bermuda limited partnership, with a target size of $150 million. The minimum investment in the fund will be $5 million.

The company behind the fund is Inter-Atlantic Capital Partners (IACP), a private investment firm based in New York City. IACP is owned and managed by a name familiar to those in the reinsurance sector: Michael P. Esposito Jr., who serves as the non-executive chairman of the board of Bermuda's XL Capital Ltd.

Working alongside Mr. Esposito is another name Bermuda knows well, Frederick S. Hammer. Mr. Hammer serves as the non-executive chairman of the board of Annuity & Life Re (Holdings), the largest Bermuda-based company exclusively serving the annuity and life insurance sector.

Messrs. Esposito and Hammer worked together for many years as executive vice presidents of the Chase Manhattan Bank (Chase).

With Andrew S. Lerner, another colleague from their Chase days, the two men founded Annuity & Life Re in 1997. Mr. Lerner is the third principal behind the new Inter-Atlantic Fund.

The three have a 20-year track record of establishing successful start-up financial services companies, particularly in Bermuda.

Through his role at Chase as an investor in XL Capital, ACE Limited and Mid Ocean Limited, Mr. Esposito assisted in the emergence of Bermuda as a major insurance market.

Venture capital fund formed Since 1994, IACP has served the insurance, reinsurance, banking, mortgage and consumer finance sectors through its involvement in merger and acquisition advisory, capital-raising, strategic planning and corporate restructuring.

Among its other start-ups has been Bermuda-based Magellan Insurance Company Ltd.