Quantum Group in Liechtenstein and Nucleus Euro-Advisers in Luxembourg will launch a fund investing in Europe’s insurance sector. They have created a joint venture management company, called Nucleus Gestion Sarl, to oversee the fund. It will be headed by Peter Goebel.
The Nucleus Assurance Fund 1 – which will be available to British investors – will primarily invest in bonds, convertible bonds and notes issued by small and mid-cap insurers and re-insurers, brokers and underwriters, the group says in a statement.
The asset manager sees growth potential in the sector because European governments are seeking to privatise their pension and health system. People are living longer, and as a result are more likely to need healthcare and critical illness insurance, the statement continues.
Insurers will also benefit from an expanding pensions sector, the asset manager says, as European citizens increasingly establish private savings plans.
The initial subscription period for Nucleus Assurance Fund 1 will last until April 29. Its investments will include equity stakes in insurance or reinsurance companies to finance recapitalisations and acquisitions or management buyouts, the asset manager says. It will also include financing solvency requirements and capital to create new products.
The fund has a target return of 250 basis points above the European Central Bank base rate.
The fund is structured by KMG Sicav-SIF as a Luxembourg-domiciled Sicav specialised investment fund.