Pillar Capital grows assets under management (AUM) to $4.4bn

Pillar Capital Management Limited, the Bermuda-based specialist collateralized reinsurance and insurance-linked securities (ILS) investment manager, had continued capital raising success in the second-half of last year, growing its ILS asset base to a new high of $4.4 billion.

The ILS investment manager has experienced steady growth in recent years, adding assets at a time when fund raising has typically been seen as more challenging.

A year ago, around the start of 2023, Pillar Capital had approximately $3.2 billion in ILS assets under management.

We spoke with Steve Velotti, Pillar’s Chief Executive Officer (CEO) and Chief Investment Officer (CIO), after the mid-year capital raising period was completed, at which time the company had added around $700 million to its AUM, to reach $3.9 billion.

Further successful capital raising efforts in the second-half of 2023 have helped to boost Pillar Capital’s funds under management in time for the January renewals, we’ve now learned.

We understand this has raised Pillar Capital’s assets under management by a further $500 million, to reach a new high of $4.4 billion, as of the start of 2024, positioning the company in the top-10 of our ILS fund manager directory.

In recent years, we understand that Pillar has won new mandates from major pension funds and other institutional investors, while also securing fresh allocations from some existing investors, which has helped the company to continue its steady growth-path.

It’s worth noting that, where Pillar Capital is concerned, the investment manager reports its assets under management after excluding sums that are trapped, in side-pockets, or elements such as premiums expected to be received.

So, the $4.4 billion of capital Pillar reports is reflective of the usable, or deployable, assets under management the ILS manager currently has at its disposal.

View information on many dedicated ILS fund managers, as well as reinsurers offering ILS style investment opportunities, in our Insurance-Linked Securities Investment Managers & Funds Directory.