Cohen's SAC Sells Its Reinsurance Business to Investors

The Greenwich billionaire's business portfolio will become a tad smaller.

Steven Cohen. Photo credit: Huffington Post.
Steven Cohen. Photo credit: Huffington Post.

The reinsurance arm of Greenwich billionaire Steven Cohen's SAC Capital Advisors hedge fund is reportedly being sold to a group of investors led by the former CEO of Marsh & McLennan company.

In its report, Reuters said the investors are being led by insurance-industry veteran Brian Duperreault who is poised to take the reins of the Bermuda-based reinsurance company in December. SAC Re will be renamed Hamilton Re when the agreement — for which terms were not disclosed — is finalized.

SAC pleaded guilty in November to insider trading and accepted responsibility for criminal behavior on the part of six employees, which could cost Cohen's Stamford-based firm $1.8 billion in civil and criminal penalties. The guilty plea is pending before a federal judge.

The plea will close a federal investigation into the operations of SAC Capital Advisors of Stamford, founded and run by Cohen. The plea agreement is to include a five-year probation on the fund, requiring SAC to no longer manage money for outside investors — including premiums for a reinsurance company, although the firm is expected continue managing Cohen’s estimated fortune of $14 billion.

Besides Duperreault, the investor group buying SAC Re is comprised affiliates of the New York hedge-fund firm Two Sigma Investments LLC, private-equity firms Capital Z Partners and Performance Equity Management, and institutional investors, according to the report.


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something