Infrastructure Fund Raises Almost $100 Million

May 29, 2018

A fund established by Bermuda’s insurance and reinsurance industry to invest in the country’s infrastructure has been officially launched, and has raised almost $100 million.

“The Bermuda Infrastructure Fund is the brainchild of AIG CEO Brian Duperreault, supported by New Venture Holdings CEO Don Mackenzie and Arch Capital Group Chief Investment Officer Preston Hutchings,” the announcement said.

“Its formation follows Mr. Duperreault’s chairmanship of the Spending and Government Efficiency [SAGE] Commission when it became clear that investment in the Island’s infrastructure had more chance of becoming a reality if the private sector provided the financial impetus.

“Over the last few years, Mr. Duperreault, Mr. Mackenzie and Mr. Hutchings have advocated on behalf of Bermuda’s future through meetings with industry leaders and, as a result, have raised almost $100 million.

“Founding members of the fund are: AIG, Arch, XL Catlin, AXIS, RenaissanceRe, Hamilton Insurance Group, Argus and BF&M. In the first instance, the types of projects the fund will consider are ports, docks, roads, bridges, industrial facilities and healthcare facilities, among others.”

“Don, Preston and I are delighted to be able to announce the formation of this fund, which represents an investment in Bermuda by the insurance and reinsurance industry,” said Mr. Duperreault.

“This has been a real team effort, driven by our shared belief in and commitment to Bermuda. It’s been my distinct pleasure to work with them on this project. I would be remiss in not giving Arch Capital Group a special mention, given their early and leadership commitment to this project.

“We’re particularly pleased that the companies supporting the fund are both local and international as it sends a clear signal that our entire sector wants Bermuda to succeed and prosper.

“As is the case in many countries, aging infrastructure is a threat to growth and development. Here in Bermuda, Government’s goal of establishing new industries like insurtech depends on a sound infrastructure being in place; the Bermuda Infrastructure Fund is a potent vehicle to help achieve this goal.”

Premier and Minister of Finance David Burt stated, “The establishment of the Infrastructure Fund is a vote of confidence in Bermuda and in the cooperative approach to governance that this Government has taken.

“The Fund is important for Bermuda on two fronts: it supports the modernization of Bermuda’s aging infrastructure and will provide jobs for Bermudians in the months and years to come.”

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Comments (34)

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  1. JOSH says:

    What is the guaranteed rate of return promised here?

  2. sandgrownan says:

    Wouldn’t need an infra fund if previous PLP administrations hadn’t played fast and loose with the public purse.

    Essentially, the private sector is bailing out the government.

    • wahoo juice says:

      So right and just love the spin that Mr. Burt puts on it about confidence in the plp government….blah blah blah. My wish/hope is that the government do not get their sticky fingers on the money.

      Thank you IB.

    • andre says:

      Rubbish!

      • Wahoo says:

        Rubbish? The facts are there to see the cost over runs alone on any one project would cover the full repair of one bridge. Plp turned us into a charity case in only a few short years and they refuse to admit it.

        Thank you IB!

      • Sara says:

        It’s not rubbish and if you think that you don’t understand economics or math!

      • sandgrownan says:

        Rubbish? What – rubbish that we’re skint or rubbish that it was the PLP’s fault?

      • Jus' Wonderin' says:

        Not at all ya just clueless lol…

      • Ringmaster says:

        The devil is in the details. How will the “investors” in the Fund be paid? Bob Richards turned down the offer because the fees wee too high so what has changed? How will $100m fund roads, ports, docks, bridges and how do they pay back the investors – by tolls? It sounds like PPP or privatization, both of which the PLP railed against when in Opposition. Oh how desperation changes the sound bites, just like the entry fee for cryptocurrencies who no one else wants. Promise a few jobs and a charitable contribution and they are Bermuda’s third pillar. No jobs for Bermudians though, just more expats but that’s OK with the PLP and their voter base apparently now they are the Government.

    • Mark says:

      spot on

    • Sara says:

      Truth!!!

    • Trufth says:

      “Essentially”????

      No, the private sector IS bailing out the government.
      Drop the “essentially”.

  3. Andrew says:

    Funny how Burt takes credit for this fund being set up. lol

  4. Onion Puke says:

    We won’t (nor should we) see one red cent if Burt keeps harping on his stealth Independence campaign.

    • Stephen Thomson says:

      This may well be a watershed moment for Bermuda.
      Incredibly entrepreneurial and thinking “outside the box”.
      Thank you for being so innovative.
      Hats off to all concerned and let’s get going. Cayman has a massive head start due to Dart.

    • andre says:

      What’s your fear?

  5. bananabus says:

    Premier and Minister of Finance David Burt stated, “The establishment of the Infrastructure Fund is a vote of confidence in Bermuda and in the cooperative approach to governance that this Government has taken.

    Let’s not forget that this fund would not have been necessary had the PLP not messed up so badly last time around.

    • Mark says:

      and it would not have happened without the OBA. This government had nothing to do with it but they will take credit. I bet in a few years they’re gonna be taking credit for the airport and all the new hotels as well! They will also be passing immigration reform that will be extremely similar to the pathways to status that there was that stupid riot over. you watch. they’ll take credit for the OBAs work and continuing all of their policies.

  6. gustav says:

    does that mean that the MP are getting now a private plane in order to get fast and convenient to their millions of important meeting wordwide

  7. Politricks says:

    Bob Richards rejected this proposal whilst Minister of Finance due to the management fee that was being demanded.

    Can we get some details on how this arrangement will work? Do the companies take an ownership interest in the projects they finance? What are the terms of such arrangements?

    If anyone thinks that such firms will simply give away a $100mn for nothing, they are deluding themselves.

    • Bandit says:

      And why should they.

    • kevin says:

      This may be the only way that this current government can borrow money the tap surely is turned off from outside agencies. Can we please understand the rate of interest and how long before it has to be paid back.
      We are about to sink deeper , but when you vote in people who don’t have a clue , this is what you get
      24 – 12 you voted for it now you have to live with it.

  8. nerema says:

    So it’s a $100m loan to the government. More debt, just from a different source.

    A question for Mr Burt. How many “ports, docks, roads, bridges, and industrial and healthcare facilities” does he think can be built with $100m?

    When will this loan be repaid, and what is the rate of interest?

  9. Hmmmm says:

    I hope that Government doesn’t have control of where the money goes (and Brian audits the spending)! I can see an 50 million overrun going missing!!

  10. LOL says:

    So the PLP is leading the charge on privatization!

  11. Warwick Beaches says:

    Burt could have said thank you, or offer gratitude. Just like real quick.

  12. WSP says:

    There must be certain MP’s licking their chops at that amount of money,and how they can get the contracts.

  13. Mark says:

    interesting how the 24-12 crowd is absolutely silent on stories like this

  14. andre says:

    How did he take credit for it?

    • Andrew says:

      Are you asking or being sarcastic?…..just in case you are really asking..

      Premier and Minister of Finance David Burt stated, “The establishment of the Infrastructure Fund is a vote of confidence in Bermuda and in the cooperative approach to governance that this Government has taken.

      the part that starts ‘the cooperative’……etc.

  15. Jus' Wonderin' says:

    They had to do it because we guys are broke lmfao….it only gonna get worse bra!

  16. What says:

    Remember now we do not need these expats here. Have not heard them refuse the money though. Mr Famous what are your thoughts on this??? I would have let this island drown in there own misery and bail themselves out. Funny how the exempt companies are always the ones to help this island. Just amazing yet PLP supporters do not like the foreigners being here.

  17. Çharlly X says:

    It’s a positive step in keeping up our infrastructure. Why harp on silly negativity and painting bad pictures. If our volcano started erupting would that be the fault of politicians ??