SageSure, a managing general underwriter, has made an investment in insurance-linked securities fund manager Pillar Capital Management, which has over $4bn of institutional assets under management.

SageSure’s existing debt facility with long-standing capital partner Ares Management was expanded to support the investment.

The investment adds Pillar’s reinsurance risk underwriting capabilities and institutional investor relationships to the SageSure platform. This expands SageSure’s capabilities across the property catastrophe value chain and strengthens its ability to connect underwriting expertise with a broader range of capital sources.

Pillar will continue to operate as an independent franchise and will retain its current Bermuda-based team and investment strategy, augmented by SageSure’s risk-level insights, analytics, and technology capabilities. It will continue to be led by longtime chief executive officer and chief investment officer Stephen Velotti and chief operating officer Tara Railton, with Pillar’s management team continuing to hold a substantial ownership stake in the business.

Terrence McLean, president and chief executive officer of SageSure, said the two organisations were a strong fit.

“For nearly two decades, Pillar has built a world-class platform and deep relationships with global institutional investors through a relentless focus on strong technical underwriting and prudent risk management, two principles which are core to our ethos at SageSure. For those reasons, I believe the two organizations could not be a better fit as partners,” said McLean.

Stephen Velotti, chief executive officer and chief investment officer of Pillar, said the partnership would enhance the firm’s capabilities.

“We are excited to embark on this next chapter with SageSure. While our core strategy, our team, and the way we serve our investor partners will remain unchanged, partnership with SageSure will further enhance our ability to access, evaluate, and manage catastrophe risk and allow us to continue delivering industry-leading results,” said Velotti.