Apollo Funds Commit $700 Million in Equity Capital to Catalina
(Bloomberg) -- Apollo Global Management LLC funds agreed to commit an extra $700 million to Catalina Holdings Bermuda Ltd., an insurer that acquires old property-casualty policies that it seeks to wind down.
That equity capital comes as the funds closed on a previously announced agreement to become majority shareholders of the company, Bermuda-based Catalina said Thursday in a statement. RenaissanceRe Holdings Ltd. is now a minority shareholder, along with Catalina’s management.
The additional capital, along with existing equity and cash flow, “gives us equity firepower of over $1 billion,” Fagan said in the statement. Catalina has “very substantial financial resources to originate much larger transactions than have been done in the non-life legacy sector to date.”
Funds tied to Apollo invested in Catalina in 2013 and agreed last year to buy a majority stake. The private-equity firm has also helped build annuity seller Athene Holding Ltd. and agreed in August to buy Aspen Insurance Holdings Ltd.
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