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Cinven Pursues Insurance Platform Strategy with AXA Life Europe Deal

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Private equity firm Cinven, through Sixth Cinven Fund, made an “irrevocable offer” to acquire Dublin-based insurer AXA Life Europe Limited (ALE) in a deal estimated to be worth €925 million. ALE operates in Germany, the U.K., France, Spain, Italy, and Portugal. The insurance unit has not accepted new business since last year. It has €8 billion in assets and €5 billion in reserves. Furthermore, ALE is a reinsurer of AXA’s Japanese variable annuity portfolio. Private equity firms are hot for European life insurance businesses.

The deal could be effective as early as late 2018 or early 2019, and comes on the heels of the July 2018 acquisition of Viridium Group, a manager of life insurance portfolios in Germany. Caspar Berendsen, partner at Cinven, paints the picture of a much larger insurance conglomerate in the works, “Cinven’s acquisition of ALE is a ‘repeat play’ of the consolidation platforms we have created though Guardian Financial Services in the UK, Eurovita in Italy and Viridium in Germany. Cinven’s investment strategy, in this case, focuses on the consolidation of closed life funds with variable annuity offerings, primarily across Ireland and the Isle of Man.”

AXA Life Europe’s CEO, Eoin Lynam, is very much in favor of the potential sale. Lynam publicly praised Cinven’s expertise, “We have followed Cinven’s investments across various geographies in the European life insurance markets and it’s clear that they have a fantastic grasp of the opportunities available to ALE.” Cinven manages capital on behalf of investors globally. Sovereign wealth funds contribute a 16% share of Cinven’s capital. The Boards of the Guernsey Managers supervise the governance of the funds.

Advisors

JPMorgan provided financial advice to Cinven, while Clifford Chance was the legal advisor for Cinven. Deloitte was the tax advisor for Cinven.

PSP Investments and Blue Sky Alternative Investments End Strategic Partnership Agreement

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Blue Sky Alternative Investments Limited informed Canada’s Public Sector Pension Investment Board (PSP Investments) that it agreed to terminate its strategic agreement effective March 31, 2019. In December 2017, Blue Sky Alternative Investments forged an agreement with PSP Investments to assist in committing capital in a number of agricultural investments.

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Yield-Hungry Korean Insurance Capital Backs TSX Broadway

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Mirae Asset Daewoo Co., Ltd., the Seoul-based investment banking firm, has provided a US$ 375 million loan for a redevelopment in New York’s Times Square. It joins L & L Holding Company, Maefield Development, and Fortress Investment Group who are bringing the development known as TSX Broadway to life. The building is at 1568 Broadway in Manhattan. TSX Broadway, a US$ 2.5 billion project when all equity financing is added in, will allow for renovations and expansion of the 46-storey building. An LED screen, which is not an uncommon sight in the Big Apple, will wrap around the corner of the tower. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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OFFICIALS: Saudi Crown Prince Denies Interest in Acquiring Manchester United

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The Saudi Arabian government dispelled rumors that Saudi Crown Prince Mohammed bin Salman will acquire football club Manchester United. However, Saudi Arabia’s Public Investment Fund (PIF) had talks regarding sponsorship with the football club. Manchester United signed a partnership deal with Saudi Arabia’s General Sports Authority in 2017.

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