Golden Gate invests $750m into new insurance group

Nassau Reinsurance, funded by Golden Gate, will be led by Phillip J. Gass and Kostas Cheliotis

Nassau Reinsurance Group has formed as an insurance and reinsurance platform backed by Golden Gate Capital, according to a statement.

The San Francisco-based private equity firm is committing over $750 million in capital to the new business, which will be led by insurance industry executives Phillip J. Gass and Kostas Cheliotis.

“[The] anouncement reflects our firm's commitment to supporting a robust insurance platform,” Golden Gate managing director Rob Little said in a statement. “We are confident that Nassau Reinsurance will grow and flourish under Phil and Gus' strong leadership.”

The release says, since the investment firm has no time horizons, it can make long-term investments without liquidity constraints. There is an intent to grow the business, which will focus on life, annuity and long-term care sectors.

Gass joins Nassau after serving as chairman and director of Fidelity & Guaranty Life and managing director of HRG Group Inc. Cheliotis served as director and chairman of the Fidelity & Guaranty Life compensation committee and as HRG's senior vice president and deputy general counsel.

Golden Gate manages over $12 billion of capital and invests in sectors such as going-privates, corporate divestitures and recapitalisation