Dan Loeb has won a vote to turn his UK investment trust
into a life and annuity reinsurance company, defying a fierce backlash from some shareholders.
A majority of investors backed a plan for London-listed Third Point Investors to acquire Cayman Islands-based Ma
libu Life Reinsurance, according to a statement Thursday. The British trust’s previous purpose was to invest in Loeb’s hedge fund Third Point LLC.
The planned deal will bring a “high-quality reinsurance platform to the London market,” Third Point Investors Chairman Rupert Dorey said in the statement.
Read more: Third Point UK Investors Should Reject Reinsurance Deal, ISS Says
The New York-based fund, which manages about $21 billion in assets, set up Malibu Life last year. The move mimic
ked a raft of alternative asset managers such as Apollo Global Management Inc. who have all created captive ins
urance customers for their investments over the past 15 years or so. In 2023, Loeb explored buying Bermuda-based SiriusPoint Ltd., of which he is a founding shareholder.
The billionaire hedge fund manager’s victory follows a spat with a group of shareholders, including Londo
n-based Asset Value Investors, who argued the vehicle should offer investors a full exit given the proposed change of
strategy. Proxy advisers ISS and PIRC have recommended shareholders reject the plan, while Glass Lewis backed all resolutions except the incentive proposal, citing the “potential for excessive payouts.”
See more beautiful photo albums Here >>>
Third Point holds a 25% stake in the UK vehicle. It was allowed to vote its stake after British regulators tweake
d rules on related-party transactions as part of a wider overhaul to attract more initial public offerings.
Activist investor Boaz Weinstein has been among the backers of TPIL’s plan, which was the result of a strategy review after a period of poor performance. Chic
ago-based Marlton Partners, which is being led by James Elbaor, supported the transaction after TPIL sweetened its exit offer for shareholders which Marlton helped negotiate.