Dan Loeb Hedge Fund Third Point’ Reinsurance Fund Arm Seeking to raise up to $370M in IPO.
Third Point Reinsurance said in an amended prospectus that it planned to sell 22.2 million shares at $12.50 to $14.50 a share. At the midpoint of that range, the reinsurer would be valued at nearly $1.4 billion.
That shows quick growth for the operation, which was created in October 2011 with $784.3 million worth of equity. Third Point dove into the world of reinsurance
-in which firms essentially backstop insurance firms’ operations — at a time when other hedge funds were setting up beach heads in the sector. SAC Capital Advisors, the firm run by Steven A. Cohen, has set up a similar operation, while Greenlight Capital, the hedge fund founded by David Einhorn, has had a reinsurance unit since 2004. (The latter has been public since 2007, and its stock has gone up 10 percent during that time.)
In its prospectus, Third Point Reinsurance said that it planned to use its cut of the I.P.O. proceeds for general corporate purposes and to increase its underwriting and investment capacity.
The offering is being led by JPMorgan Chase, Credit Suisse and Morgan Stanley.
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