Global Atlantic Financial Group, the Bermudian-based financial services company, has closed a more than $2.4 billion third-party capital raise for its second reinsurance co-investment vehicle, Ivy Co-Invest Vehicle II LLC.

The company said Ivy II will deploy its capital, on behalf of its investors, alongside the Global Atlantic balance sheet in qualifying life and annuity reinsurance transactions.

With the combined resources of its own balance sheet and Ivy II, Global Atlantic said it is well positioned to support its global clients’ needs for risk and capital solutions and capture what it believes is an attractive market opportunity for investors.

Ivy II shareholders are expected to benefit from the 20-year history Global Atlantic has established operating in the reinsurance market, including its longstanding client relationships, its underwriting capabilities, and its asset-liability matching expertise.

A subsidiary of KKR & Co Inc will serve as investment manager for the assets backing Ivy II’s reinsured liabilities, similar to the role played by KKR with respect to Global Atlantic’s first reinsurance co-investment vehicle, Ivy I, and Global Atlantic’s assets.

With KKR as a strategic partner to Global Atlantic and the Ivy entities, investors benefit from the investment expertise and scale KKR provides, the company said.

Phil Sherrill, chief strategy officer for Global Atlantic, said: “This is a great time to bring additional capital to the industry, and we are thrilled that our strategic partnership with KKR has allowed us to broaden the group of investors in Global Atlantic and Ivy II.

“With access to Ivy II’s committed capital, we can do more to serve our reinsurance clients in a growing market.”

Manu Sareen, co-president of Global Atlantic, and head of the institutional business, said: "We are excited by Ivy II investors’ confidence in our reinsurance strategy and franchise.

“We see strong demand for reinsurance solutions, driven by industrywide restructuring, an evolving macroeconomic environment, and lower availability of historical sources of capital for the industry.

“With Ivy II, we are better positioned to support our reinsurance clients’ needs and to meet our goal of being our clients’ reinsurer of choice.”

Ivy II was established following the successful deployment of Ivy I, which was founded in 2020 with over $1 billion of capital.

Ivy II has a diverse investor base, including sovereign wealth funds, pensions, endowments, insurance companies, family offices, and high net worth individuals.

The Global Atlantic balance sheet will commit capital alongside Ivy II in qualifying life and annuity reinsurance transactions, ensuring strong alignment between Global Atlantic and Ivy II shareholders.