Mitsui buys stake in New Ocean Capital; commits $100m of investment funds

Trading company Mitsui & Co has bought a 15 percent stake in New Ocean Capital Management, the investment management company formed by XL.

Mitsui has also committed an initial $100 million of investment funds to the private fund platform on a multi-year basis. This includes an existing investment of $21 million.

A representative of the company will join the board of New Ocean, alongside existing representatives from XL and Stone Point Capital, a private equity firm.

Chris McKeown, chief executive officer of New Ocean, said: “We are delighted to welcome Mitsui as an investor and owner.”

He explained that Mitsui has invested with New Ocean since 2014, and “the substantial commitment to our strategies as well as their ownership stake is validation of New Ocean’s unique platform”.

“Mitsui’s commitment to New Ocean provides the ability to draw investor capital, over time, at key renewal dates in the reinsurance calendar, as opportunities present themselves.

“Mitsui is a bellwether investor with substantial global relations and reach, which we anticipate will bring substantial value to the continued growth of our business,” McKeown said.

Craig Wenzel, head of alternative capital at XL, added: “Mitsui’s increased investment in New Ocean reflects the growth and development of the New Ocean platform and it’s gratifying to see such a high calibre corporate investor join the New Ocean family.”

He said that New Ocean is a “cornerstone” to XL’s long-term commitment to alternative capital, “which will increasingly become more relevant in our business going forward”.

Takashi Nakai, general manager of the insurance business department at Mitsui, added that Mitsui was committed to building long-term businesses that will benefit it and other investors over time.

“For this reason, we are pleased to join New Ocean as a strategic investor, at a time when we believe ILS/reinsurance will become more appealing to institutional investors in Japan, and across the globe.”

The company had decided to increase its affiliation with New Ocean because of the “experience and expertise of its investment team led by Chris McKeown and its differentiated access to risk”.