Majority of proceeds will be invested in the June and July reinsurance renewals

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Blue Capital Management, the third-party capital and reinsurance-linked fund management arm of Montpelier Re, has raised $52.28m for Blue Capital Global Reinsurance Fund through the issue of 51,250,000 new shares following the successful first closing under its placing programme.

The company will use the net proceeds to invest in a diversified portfolio of fully collateralised reinsurance-linked contracts and other investments carrying exposures to insured catastrophe event risks via a segregated account of Blue Water Master Fund.

It is anticipated that the majority of the net proceeds will be invested in the June and July reinsurance renewals.

Blue Capital Management president and chief executive William (Bill) Pollett said: “We are delighted to have attracted such a strong level of support from a broad range of new and existing high quality investors. We believe the first closing provides the company with a strong platform for further growth and we anticipate taking full advantage of the placing programme for further fundraising opportunities over the next 12 months.”