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Alternative capital – A mature option for PE to take advantage of market cycles: BMO

For private equity investors, the use of alternative capital vehicles and insurance-linked securities (ILS) structures presents a mature way to take advantage of reinsurance market cycles in an efficient manner, analysts at BMO Capital Markets have highlighted.

This is a trend we’ve closely watched over the years, where some equity investors are now aware that they can access the risk premium of the reinsurance market, without all of the operational risk and overhead, through structures developed for the insurance-linked securities (ILS) market and the use of alternative capital strategies.

The BMO Capital Markets analyst team highlights this as one of their conclusions following the recent AIFA insurance conference.


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