Convex Group Raises $1B Of Additional Capital

November 19, 2020

Onex Corporation and its affiliated funds, along with GIC, announced that they and a consortium of existing and new co-investors have committed to invest $1 billion in Convex Group Limited.

A statement from the company said, “Convex is a specialty insurer and reinsurer focused on complex risks that launched with $1.7 billion of committed capital in April of 2019. Convex’ initial invested capital was raised from the Convex management team, Onex Partners V, PSP Investments and a consortium of co-investors. The additional capital has been committed by the original investors as well as multiple new investors led by GIC.”

Bobby Le Blanc, President of Onex and Head of Onex Partners, commented, “Over the past eighteen months, the Convex management team has made significant progress in realizing our original investment thesis, having successfully executed on its recruiting plan, implemented key operational systems and processes, established strong relationships with brokers, and written over $1 billion in premiums.

“This momentum, coupled with the favorable P&C insurance market conditions, have further improved the risk-adjusted return opportunity and make us confident in the continued success of the business.”

Stephen Catlin, CEO of Convex, said, “Onex and our existing investor base have provided us with tremendous support in building the business and we welcome the new investor partners, including GIC. We are delighted to have additional capital as this will enable us to take full advantage of the hardening market.”

Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC, said, “GIC is pleased to partner with Stephen, Paul, and the rest of the Convex team given their tremendous success to date and long track record of disciplined underwriting.

“We believe that Convex’ unique value proposition within complex risk is well-suited for the current market environment. As a long-term investor, we look forward to working alongside Onex and other shareholders to support the Company as it embarks on its next phase of growth.”

Martin Longchamps, Managing Director, Private Equity at PSP Investments, said, “We are pleased to continue our successful partnership with Onex and Convex by supporting the Company’s accelerated growth strategy.

“The Convex management team has established an agile, world-class specialty insurer with a strong operational foundation. This transaction is in line with our strategy of making sizeable, direct investments in high-quality companies alongside experienced partners.”

The capital raise includes more than $300 million from the Onex Group, including $200 million from Onex Partners V.

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