HSCM raises over $175m for new life insurance-focused continuation fund

Hudson Structured Capital Management Ltd. (HSCM), the reinsurance, insurtech, insurance-linked securities (ILS) and transportation focused investment manager, has raised more than $175 million from investment firm StepStone Group and existing investors for the launch of HS Mohawk Fund I LP, its new life insurance-focused continuation fund.

According to HSCM, the launch of this new fund is a key milestone in its ongoing investment into asset-intensive life insurance.

HS Mohawk Fund I LP was established to acquire interests in five asset-intensive life insurance investments held by the firm’s multi-sector re/insurance fund, HSCM Bermuda Fund Ltd., in order to support the investments’ continued growth while providing existing Bermuda Fund investors with an option for near-term liquidity.

HSCM has highlighted its diversified sourcing capabilities, stating that it has become a “partner of choice” for structuring bespoke transactions with sponsors.

Following the successful closing of the continuation fund, HSCM has appointed Gokul Sudarsana as Chief Investment Officer for Life Insurance, in addition to his Chief Actuary role.

“We are delighted to announce the successful closing of the Fund and continue to be a trusted capital partner to our portfolio companies and drive value creation for our investors.

“This transaction marks an exciting milestone in our growing life insurance franchise, and we look forward to our continued collaboration and partnership with StepStone,” said Sudarsana.

The $175 million plus of capital commitments the fund launches with was led by StepStone. Commenting on the transaction, Partner at the investment firm, Geoff Dolan, said, “This transaction serves as a testament to our goal of partnering with best-in-class sponsors to provide capital solutions for their highest quality assets and liquidity options for existing investors. We are excited to build on our partnership with HSCM and support the firm’s continued success in the asset-intensive life insurance space.”

On this transaction, PJT Partners served as the exclusive financial advisor to HSCM, and Proskauer Rose LLP served as HSCM’s legal counsel. Goodwin Proctor LLP served as legal counsel to StepStone on the transaction.