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Reinsurance Group of America Announces Investment and Strategic Partnership With Velocity Capital Advisors
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Positive)
Tags
partnership
Rhea-AI Summary
Reinsurance Group of America (NYSE: RGA) announced a strategic minority investment in Velocity Capital Advisors through a wholly-owned subsidiary, aiming to enhance returns and optimize investment management. With assets nearing $1.5 billion, Velocity specializes in non-dilutive financing solutions for various alternative asset managers. This marks RGA's first investment in this sector, aligning with its strategy to access attractive private assets. RBC Capital Markets acted as the exclusive financial advisor for RGA in this transaction.
Positive
RGA's investment in Velocity provides access to a diverse range of alternative assets.
Velocity's approach to customized financing aligns with RGA's long-term investment strategy.
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ST. LOUIS--(BUSINESS WIRE)--
Reinsurance Group of America, Incorporated (NYSE: RGA), a leading global life and health reinsurer, announced today that it has made a strategic minority investment into the holding company of Velocity Capital Advisors LLC (“Velocity”) through a wholly-owned subsidiary. It has also entered into a long-term investment management agreement on behalf of one or more subsidiaries of RGA. Velocity, which has assets under management approaching $1.5 billion, provides cost effective, long-term capital to help sponsors of any fund type or sector enhance returns, optimize portfolio company balance sheets, or create liquidity for growth, succession planning or distributions. Velocity provides highly customized, non-dilutive debt and preferred equity financing solutions for a variety of alternative asset managers, including private equity funds, fund of funds, growth capital, hedge funds, venture capital, real estate, and credit-oriented strategies.
“We are excited about our strategic relationship with Velocity, which benefits both organizations, and provides RGA with another avenue to access attractive private assets,” said Leslie Barbi, Executive Vice President and Chief Investment Officer, RGA. “This is RGA’s first transaction of this type, and we plan to continue evaluating investments in alternative asset managers in the coming years as part of our strategic goal to further expand our investment platform.”
“The entire Velocity team is grateful for and humbled by the support that all of our borrowers and investors have shown in our business since inception,” said Ed Levy, Co-Founder and Managing Partner, Velocity. “RGA is the ideal partner for our firm as we enter our next phase of growth. They share our strategic vision for the business which is premised on providing tailored capital solutions to meet the unique liquidity needs of the alternative asset secondary market. With RGA’s support, and that of our other investors, we believe that we can continue to strengthen our market position by delivering a differentiated value proposition to all of the constituents that we serve.”
RBC Capital Markets served as exclusive financial advisor to RGA on the transaction. Additional terms of the transaction are not being disclosed.
About RGA
Reinsurance Group of America, Incorporated (RGA), a Fortune 500 company, is among the leading global providers of life reinsurance and financial solutions, with approximately $3.5 trillion of life reinsurance in force and assets of $92.2 billion as of December 31, 2021. Founded in 1973, RGA is recognized for its deep technical expertise in risk and capital management, innovative solutions, and commitment to serving its clients. With headquarters in St. Louis, Missouri, and operations around the world, RGA delivers expert solutions in individual life reinsurance, individual living benefits reinsurance, group reinsurance, health reinsurance, facultative underwriting, product development, and financial solutions. To learn more about RGA and its businesses, visit the company’s website at www.rgare.com.
About Velocity Capital Advisors
Velocity is an alternative asset management company dedicated to providing asset-based liquidity solutions in the form of senior loans or preferred stock supported by portfolios of alternative assets. Velocity’s core value proposition is to deliver GP liquidity solutions at the fund or management company levels, by providing flexible capital tailored specifically for each borrower’s needs. Velocity is based in New York City with offices in Los Angeles and Dallas. For more information, visit velocitycapllc.com.
