Velocity Capital Advisors has secured a strategic minority investment from New York-headquartered life and health reinsurer Reinsurance Group of America (RGA).
The size of the investment was not disclosed.
As part of the deal, RGA will pick an undisclosed minority interest in Velocity through its wholly-owned subsidiary.
The firm has also signed a long-term investment management agreement with Velocity on behalf of one or more its subsidiaries.
Velocity provides capital to help sponsors of any fund type or sector improve returns, enhance portfolio company balance sheets, or set up liquidity for growth, succession planning or distributions.
The firm also offers customised, non-dilutive debt and preferred equity financing solutions for a range of alternative asset managers.
These includes fund of funds, private equity funds, growth capital, hedge funds, venture capital, real estate, and credit-oriented strategies
Velocity has nearly $1.5bn in assets.
Commenting on the deal, Velocity co-founder and managing partner Ed Levy said: “RGA is the ideal partner for our firm as we enter our next phase of growth. They share our strategic vision for the business which is premised on providing tailored capital solutions to meet the unique liquidity needs of the alternative asset secondary market.
“With RGA’s support, and that of our other investors, we believe that we can continue to strengthen our market position by delivering a differentiated value proposition to all of the constituents that we serve.”
RGA CIO and executive vice-president added: “This is RGA’s first transaction of this type, and we plan to continue evaluating investments in alternative asset managers in the coming years as part of our strategic goal to further expand our investment platform.”