II, around the middle of 2020, and that 2nd insurance and reinsurance focused SPAC lorry eventually raised $230 million including exercised over-allotment alternatives.
“We currently intend to focus our efforts on identifying services providing insurance coverage or insurance related services, with specific focus on insurance circulation businesses, controlled insurance or reinsurance businesses, and insurance coverage associated technology organizations. We are not, however, needed to finish our initial company mix with an insurance company. While we may pursue a service combination outside of that market, we believe a focus on the insurance coverage sector best combines the proficiency and experience of our management team with a sector that uses attractive investment chances,” the brand-new company described.
Set income monetary services focused investment firm Cohen & & Company, LLC is back with another insurance, insurtech and reinsurance focused Special Purpose Acquisition Company, a blank check company or SPAC, with a $253 million target for INSU Acquisition Corp. IV.Once once again, the financial investment manager has an insurance coverage and reinsurance focus for its latest Special Purpose Acquisition Company (SPAC) venture, and the Cohen & & Co vehicle has John Butler, former Managing Partner at insurance-linked securities (ILS) investment professional Twelve Capital and who joined Cohen & & Co. in 2017, as its President and CEO.
Cohen & & Co has actually been active in the SPAC capital raising space for a number of years, with its first SPAC with a insurance coverage, insurtech and reinsurance remit launched in early 2019.
Ever since the financial investment supervisor has actually successfully raised 3 SPAC automobiles, with the most current seeing the company securing an upsized $250 million preliminary public offering (IPO) for INSU Acquisition Corp.
III. Insurance Coverage Acquisition Corp. (IAC) was the first Cohen & & Co. SPAC concentrated on reinsurance and it eventually raised practically $151 million and after that participated in a combination deal with automobile e-commerce firm, Shift Technologies Inc
. This was quickly followed by INSU Acquisition Corp. II, around the middle of 2020, which second insurance and reinsurance focused SPAC automobile eventually raised $230 million including worked out over-allotment options.
The second re/insurance SPAC from Cohen & & Co. then participated in a prominent combination with insurtech Metromile, taking the business public at the same time in a deal that offered Metromile a pro forma business value at closing of $956 million and a pro-forma market cap of $1.3 billion.
The third was INSU Acquisition Corp. III, which targeted $230 million consisting of over-allotments at its launch, but then effectively raised $250 million by its IPO.
That third SPAC vehicle has yet to reveal an acquisition or merger with an insurance, reinsurance, insurtech, or related company, but currently Cohen & & Co. is onto its fourth SPAC.
INSU Acquisition Corp. IV will seek to raise $253 million including overallotments for the underwriters, which will once again then be put to work in a deal with a company in reinsurance, insurance coverage, or insurance technology associated sectors.
“We currently intend to concentrate our efforts on recognizing organizations offering insurance or insurance related services, with specific emphasis on insurance coverage distribution organizations, regulated insurance or reinsurance organizations, and insurance coverage related technology businesses. We are not, nevertheless, required to finish our initial company mix with an insurance organization. While we might pursue an organization combination beyond that market, our company believe a focus on the insurance sector best integrates the know-how and experience of our management group with a sector that uses attractive investment chances,” the brand-new business explained.
A flurry of SPAC vehicles focused on the insurance coverage and reinsurance market have emerged in the last six months, including a SPAC called Kairos released with the backing of ILS fund supervisor Hudson Structured Capital Management.
Far, Cohen & & Co. is the only sponsor of insurance or reinsurance focused SPACs to effect a transaction within these markets, with its Metromile offer.
These special purpose acquisition business (SPAC), or blank check financial investment cars, are an attractive proposition for investors at this time, giving them a method to back supervisors with particular insurance and reinsurance sector expertise on unidentified acquisitions and combinations that might return considerable multiples.
The listing makes the financial investment opportunity even more compelling for some, provided the prospective liquidity choices it offers as well.
SPACs also present a lower-friction way to go public, being a much simpler route than a full IPO listing in the standard way.
Now, for Cohen & & Co., still with a third SPAC searching for an acquisition, this fourth will bring fresh capital to deploy as it continues building this ingenious pipeline of returns for its financiers.