Program Management Specialist R&Q Receives Equity Investment of $100M

Randall & Quilter Investment Holdings Ltd., the global program management and legacy acquisitions specialist, announced it has received an equity investment of US$100 million, which is designed to help it capitalize on opportunities in its specialty business areas.

R&Q said the new equity investment is composed of:

• A US$80 million subscription by Brickell Insurance Holdings LLC, an investment vehicle controlled by 777 Partners, for a new series of preferred stock issued by Randall & Quilter PS Holdings Inc., an indirect wholly owned subsidiary of R&Q. This preferred stock is exchangeable for ordinary shares in the capital of the company at a price of £1.35 per ordinary share;
• A US$20 million subscription by funds managed by Hudson Structured Capital Management Ltd. for 11,902,318 new ordinary shares at a price of £1.35 per subscription share.

“We are extremely pleased to have raised these funds. We have long been clear on the significant opportunities we see for the group in the two fast growing markets we operate in: program management and legacy,” said a joint statement from the Executive Directors of the company, Ken Randall, Alan Quilter and William Spiegel.

“It has become apparent that the market dislocation currently being experienced will only increase demand for these specialist capabilities as the balance sheets of traditional insurance companies come under increased strain,” the stataement continued. “The equity we have secured will enable us to proactively and quickly move to capitalize on these dynamics as the market seeks the solutions R&Q is able to provide.”

The directors explained that 777 Partners and Hudson Structured are investment firms they have known and admired for many years. 777 Partners, through Brickell, already is an important stakeholder in R&Q.

Commenting on the effects of pandemic, the executive directors said it would have limited impact on the group’s existing business.

“hilst there will be some near-term delay in completing transactions, we believe the impact of the pandemic on the wider insurance industry will create considerable future opportunity for the group,” they said.

“Our existing legacy books have limited exposure to unexpired risk, our program management portfolios are largely reinsured with highly rated counterparties, and our investment portfolio has an average duration of two years with approximately 92% of our investments rated BBB or better of which approximately 51% is in government bonds and cash,” the directors added. “Our conservative investment portfolio has resulted in net unrealized losses of only 1.4% as of April 22, 2020.”

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