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Värde Partners, Agam Capital Partner On Life And Retirement Solutions Joint Venture

Alternative investment manager Värde Partners and Agam Capital announced today a joint venture to pursue the acquisition, reinsurance and management of life and retirement businesses. This is part of Värde’s intention to broaden its investing in targeted sub-sectors of the financial services industry, marking the expansion of its private equity strategy into insurance; the firm will invest $500 million in complex life insurance, annuity, and reinsurance assets that will be supported by the JV.

Elena Lieskovska, Partner and Head of European Financial Services at Värde Partners, said:

“Given the current landscape of historically low interest rates and fundamental regulatory and accounting changes, we believe the opportunity across the $23 trillion life insurance industry is huge. Life insurance companies are increasingly seeking risk mitigation solutions for legacy blocks of liabilities with multi-dimensional risks. This is particularly true for complex annuity products, such as those with high guarantees or exposure to certain market risks, which typically attract a higher capital charge.  We are excited to expand Värde’s financial services footprint into insurance, and partner with Agam to provide alternative solutions to the industry.”

 Agam’s Co-Founders, Avi Katz and Chak Raghunathan said:

“The need for multi-dimensional solutions to the complex changes facing the life insurance industry has never been greater. Against this backdrop, we believe the combination of Värde Partner’s core strengths in complex transactions together with Agam’s differentiated pALM platform will create a world-class insurance solutions provider. In particular, the Agam platform is designed to price, analyze and manage complex insurance products with embedded capital market risks and offers creative structures and solutions on a global basis.”