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.