Bermudian-based insurance manager Horseshoe has bought funds administrator Ikonic.

The move will create a leading independent fund administrator and insurance manager with expertise in both insurance-linked securities and alternative funds management.

Andre Perez, chief executive officer of Horseshoe, said: “We have partnered successfully with Ikonic since 2011 through our joint venture fund administrator, ILS Fund Services, providing fund administration and actuarial valuation services to ILS funds, therefore joining our respective teams is a natural progression.

“From the perspective of Horseshoe’s existing clients, we are very excited to be able to offer a one-stop shop for our clients that require both insurance and fund-related services.”

He added: “In respect to Ikonic’s clients, the combined companies will enable us to provide a larger global reach, a broader service offering and a stronger senior management team focused on delivering top-notch service.

“Over the years, Horseshoe has built relationships with a large number of institutional asset managers and investors which we expect will bring value to our newly-acquired fund administration business and its future growth.”

Ikonic, headquartered in Bermuda and with offices in North Carolina and the Caymans, was set up in 2007 to provide fund administration to alternative investment funds, including fund and partnership accounting, investor servicing, anti-money laundering and antiterrorist financing advice, corporate administration and directorial services.

Ikonic CEO Eddie Conyers said: “I am so proud of what we have achieved at Ikonic since we started in 2007, which is why it was very important to the senior management team that we found a partner that had the same core values as us.

“Similar to Ikonic, Horseshoe prides itself on truly partnering with clients and becoming an integral part of their success.

“Ikonic’s clients and their investors will continue to receive the same best in class service, from both the existing management team and the Ikonic employees, but now will also be supported by a larger company and a very talented senior management team.

“The transaction will not involve any interruption to Ikonic’s fund operations and therefore the transition to Horseshoe will be seamless for our clients.”

The merger means the joint firm will have more than $20 billion in assets under management and operating offices in Bermuda, the US, Caymans and Gibraltar and 70 employees worldwide.

The deal will also give the combined companies a broader capital base, allowing Horseshoe to invest resources in key strategic areas, including infrastructure and product development, and further expand its services to clients.