Neuberger Berman has broadened its alternative investment platform through the acquisition of specialist asset manager Cartesian Re, which with its affiliate Iris Re, manages more than $1 billion in assets under management (AUM) focusing on the insurance-linked strategies (ILS) asset class.
Cartesian Re was developed as a portfolio company of Cartesian Capital Group, which will work with Neuberger Berman to deliver ILS capabilities to clients globally. The addition of Cartesian Re illustrates Neuberger Berman’s continued focus on diversifying its alternative capabilities, particularly with strategies offering returns uncorrelated with financial markets. Cartesian Re will be renamed NB Insurance-Linked Strategies and its affiliated Bermuda reinsurer, Iris Re, will be renamed NB Reinsurance Ltd.
Led by Managing Partner Peter Yu, Cartesian Capital Group is a global private equity firm with $3 billion in committed AUM. In 2009, Cartesian Capital Group founded Cartesian Re as an ILS manager focused on industry-loss warranties, and has grown the firm consistently for nine years. Since its inception, Cartesian Re has consistently sought investment returns that are uncorrelated with traditional asset classes, while providing investors with greater transparency and less counterparty risk than other traditional insurance-related strategies.
Cartesian Re brings to Neuberger Berman a diverse group of institutional clients and an experienced investment team, which has produced a long-term track record driven by a proprietary investment process and sophisticated quantitative analytics. All Cartesian Re professionals, including Managing Directors Peter DiFiore, Cedric Drui and Charles Mixon, have joined Neuberger Berman and will continue to serve in their current roles. Neuberger Berman and Cartesian Capital Group have taken great care to preserve continuity in Cartesian Re’s investment management, investment philosophy, strategy and operations.
“We are excited that Cartesian Re has now joined Neuberger Berman. I have long had the highest regard for Neuberger’s thoughtful investment philosophy and execution,” said Mr. Yu. “We look forward to a long and productive collaboration.”
“The investment team from Cartesian Re brings to our clients an established track record from unique investments that are not correlated with traditional asset classes,” said Tony Tutrone, Head of Alternatives, Neuberger Berman. “Peter and his team started with a concept and have built a world-class organization and we look forward to working together.”
The terms of the transaction were not disclosed. Sandler O’Neill + Partners, L.P. acted as financial advisor to Cartesian Capital Group and Kirkland & Ellis served as legal advisor. Willkie Farr acted as legal advisor to Neuberger Berman.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 20 countries, Neuberger Berman’s team is more than 2,000 professionals. Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages $315 billion in client assets as of September 30, 2018. For more information, please visit www.nb.com.
About Cartesian Capital Group
Cartesian Capital Group, LLC is a leading global private equity firm with a demonstrated ability to grow companies internationally. With funds comprising $3 billion in capital commitments, Cartesian’s team has helped to build 50 companies operating across 30 different countries. For more information, please see www.cartesiangroup.com.