Saturday, April 08, 2006

The Bermuda triangle is useless vs. Private Equity Firms...

Stone Point Capital (via the Trident Funds that it manages) has made an offer for Axa's Reinsurance business. The article does not give details regarding the structure of the deal (debt/equity/cash and the future capitalization picture of the purchased entity) but this appears to be a positive step for the industry.

Private Equity firms are flush with cash, and need to deploy this capital lest returns evaporate. Why Axa is in "exclusive" talks with Stone Point is a mystery to me, however. With Hedge Funds getting involved in setting up their own RE companies, one would think that this would be more of an auction.

The Trident funds appear to have a world-class management team (the biographies are replete with the usual Harvard/Penn/Cornell/Columbia east coast suspects), and most are refugees from Marsh Private Equity.

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