Latest news with #TPIL
Business Mayor
25-05-2025
- Business
- Business Mayor
Daniel Loeb's Third Point Investors in deal to create London-listed insurer
Unlock the Editor's Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Billionaire activist Daniel Loeb's Third Point Investors Limited plans to acquire a reinsurance company, in a move that would lead to the creation of a new London-listed insurer for the first time since 2020. London-listed TPIL said on Wednesday that it would acquire Malibu Life Reinsurance, a Cayman Islands-based life and annuity reinsurer that Loeb's New York-based hedge fund Third Point launched last year. The Guernsey-based closed-end fund plans to acquire Malibu in an all-share deal that values Malibu at about $68mn. If the deal is approved by shareholders, TPIL said it would acquire Malibu Life Re from another Loeb vehicle in exchange for the issue of new shares, in what amounted to a reverse takeover. But the stock-for-stock deal has already been hit by opposition from Asset Value Investors Limited, which has a 7 per cent stake in TPIL and which said it planned to vote against the proposal. AVI, a specialist investor in closed-end funds, said in a statement that the planned transaction 'cemented' Third Point Investors' status as 'the poster child for appalling corporate governance'. Third Point declined to comment on the statement from AVI. The UK insurance market has not been immune to the broader dwindling of listings on London's stock market. The takeover would create the first new London-listed insurer created since Bermuda-based reinsurer Conduit Re's initial public offering in late 2020. Rupert Dorey, chair of TPIL, said in a statement that Malibu Life was 'a high-potential reinsurance platform with a robust pipeline of reinsurance and other origination opportunities that will enable it to achieve scale in the near-term'. Saba Capital Management, which had an approximately 1 per cent stake in TPIL, according to TPIL's Wednesday stock exchange filing, said it planned to support the transaction. Saba founder Boaz Weinstein said in a statement: 'We're pleased to see a board of directors responding to the inherent challenges within the UK investment trust market.' TPIL said the deal would give UK investors access to the booming US fixed-annuity market, which has been buoyed by broader market volatility. Athene, the annuity business wholly owned by US private capital group Apollo, has a so-called 'sidecar' reinsurance vehicle in Bermuda that has helped it raise equity capital offshore. JPMorgan said in a recent investor note that the strategy had helped build the insurer into 'the gorilla in the room' in private equity-backed retirement products. Athene earlier this month reported record quarterly inflows of $26bn. TPIL said that Malibu Life had access to a 'robust pipeline' of deals in the sector, including through a reinsurance agreement with a 'blue-chip' US life reinsurer covering about $3bn of premiums. A market participant familiar with the transaction said the US business was Aspida, which is backed by US private credit group Ares Management. Aspida declined to comment. The deal comes as reinsurers in the Cayman Islands, where Malibu Life is based, face growing scrutiny from regulators as well as criticism from US- and Bermuda-based rivals. 'Some companies are now looking to pivot to the Cayman Islands, where the regulatory framework is much less robust, capital requirements are much less defined and there's much more flexibility that companies have,' Marty Klein, Athene's senior adviser and former chief financial officer, told investors on a February call. Read More City watchdog raises concerns over £4bn life insurance market 'We don't think that's healthy for the industry. We think it's actually quite detrimental', he added.
Reuters
21-05-2025
- Business
- Reuters
Loeb's Third Point Investors Ltd to become holding company with acquisition
NEW YORK, May 21 (Reuters) - Billionaire investor Daniel Loeb is transforming his London-listed investment company into an insurance holding company following years of criticism about its valuation discount to his New York-based hedge fund Third Point. Third Point Investors Limited (TPIL)(TPOGu.L), opens new tab, which listed on the London Stock Exchange in 2007, said on Wednesday that it will acquire Malibu Life Reinsurance SPC, a life annuity reinsurer which Loeb launched last year. The stock-for-stock deal will be voted on by shareholders. Given Loeb's high ownership stake, it is likely to be approved at the vote, which is expected to occur in the third quarter. TPIL is considering a tender offer that would allow investors to get a better price for their shares than on the open market. Like other UK-listed investment companies, TPIL is known as a feeder fund and was originally designed to give retail shareholders a taste of hedge funds that had long been off limits to all but the wealthiest and largest financiers. TPIL, which has roughly $500 million invested in Third Point's flagship Offshore hedge fund, will invest principally in Third Point's various credit strategies. By the end of 2027, the new reinsurance operating company expects to deliver mid-teens returns, the company said in a statement. Last year TPIL gained 25.5% after fees. This year it is roughly flat. The merger is designed to end years of complaints about a persistent gap between where the fund's shares trade and their underlying net asset value. Criticism about the double-digit discount even turned Loeb, who has waged activist campaigns at companies including Nestle (NESN.S), opens new tab, Walt Disney (DIS.N), opens new tab and Campbell's (CPB.O), opens new tab, into a target for other activist investors. Four years ago TPIL shareholder Asset Value Investors took public aim at the TPIL discount, and TPIL took steps, including share buybacks, to address it. But the discount, which persists at many such companies, continues to annoy certain investors. Earlier this year, U.S. activist investor Boaz Weinstein, who waged war against certain BlackRock (BLK.N), opens new tab investment products, turned his attention to the UK where he targeted several local investment trusts with the aim of overhauling their boards. Last year, without direct pressure from outsiders, TPIL appointed two independent directors -- activist investors Dimitri Goulandris and Liad Meidar -- to its board to lead a months-long strategy review, which led to this move. The board, which is independent of Loeb and Third Point, earlier this week unanimously approved the planned transaction. TPIL will own an interest in the Third Point hedge fund and in Malibu after the transaction is finalized. It said it would likely meet Malibu's ongoing capital needs by periodically redeeming capital from the hedge fund. Ultimately, TPIL will become a pure-play operating company within the next 18 months to 36 months. Late last year, Third Point purchased hedge fund manager AS Birch Grove to help build out its credit platform. Third Point's move echoes recent steps by other investors, including Pershing Square Capital Management's Bill Ackman, who earlier this month took a listed real estate development company, in which he already owned a stake, and transformed it into a diversified holding company that will buy stakes in other companies.
Yahoo
21-05-2025
- Business
- Yahoo
Loeb's Third Point Investors Ltd to become holding company with acquisition
By Svea Herbst-Bayliss NEW YORK (Reuters) -Billionaire investor Daniel Loeb is transforming his London-listed investment company into an insurance holding company following years of criticism about its valuation discount to his New York-based hedge fund Third Point. Third Point Investors Limited (TPIL), which listed on the London Stock Exchange in 2007, said on Wednesday that it will acquire Malibu Life Reinsurance SPC, a life annuity reinsurer which Loeb launched last year. The stock-for-stock deal will be voted on by shareholders. Given Loeb's high ownership stake, it is likely to be approved at the vote, which is expected to occur in the third quarter. TPIL is considering a tender offer that would allow investors to get a better price for their shares than on the open market. Like other UK-listed investment companies, TPIL is known as a feeder fund and was originally designed to give retail shareholders a taste of hedge funds that had long been off limits to all but the wealthiest and largest financiers. TPIL, which has roughly $500 million invested in Third Point's flagship Offshore hedge fund, will invest principally in Third Point's various credit strategies. By the end of 2027, the new reinsurance operating company expects to deliver mid-teens returns, the company said in a statement. Last year TPIL gained 25.5% after fees. This year it is roughly flat. The merger is designed to end years of complaints about a persistent gap between where the fund's shares trade and their underlying net asset value. Criticism about the double-digit discount even turned Loeb, who has waged activist campaigns at companies including Nestle, Walt Disney and Campbell's, into a target for other activist investors. Four years ago TPIL shareholder Asset Value Investors took public aim at the TPIL discount, and TPIL took steps, including share buybacks, to address it. But the discount, which persists at many such companies, continues to annoy certain investors. Earlier this year, U.S. activist investor Boaz Weinstein, who waged war against certain BlackRock investment products, turned his attention to the UK where he targeted several local investment trusts with the aim of overhauling their boards. Last year, without direct pressure from outsiders, TPIL appointed two independent directors -- activist investors Dimitri Goulandris and Liad Meidar -- to its board to lead a months-long strategy review, which led to this move. The board, which is independent of Loeb and Third Point, earlier this week unanimously approved the planned transaction. TPIL will own an interest in the Third Point hedge fund and in Malibu after the transaction is finalized. It said it would likely meet Malibu's ongoing capital needs by periodically redeeming capital from the hedge fund. Ultimately, TPIL will become a pure-play operating company within the next 18 months to 36 months. Late last year, Third Point purchased hedge fund manager AS Birch Grove to help build out its credit platform. Third Point's move echoes recent steps by other investors, including Pershing Square Capital Management's Bill Ackman, who earlier this month took a listed real estate development company, in which he already owned a stake, and transformed it into a diversified holding company that will buy stakes in other companies. Sign in to access your portfolio
