Marsh closes $1.1b insurance fund

MMC Capital, the private equity arm of Marsh & McLennan, has rounded up a new mega-fund for investments in the global insurance, employee benefits and financial services industries.

MMC Capital, the private equity arm of professional services giant Marsh & McLennan, has drawn $1.1 billion (€914 million) in commitments for Trident III, a fund that will make investments in the global insurance, employee benefits and financial services industry.

Trident III will make equity investments of between $25 million and $150 million.

MMC Capital, a subsidiary of Marsh & McLennan, has raised more than $3 billion since 1994, according to a press release.

The private equity firm is run by Charles Davis, the chairman and CEO, who has been a director of MMC since 2000. Before joining MMC Capital as president in 1998, he was with Goldman Sachs as head of investment banking worldwide.

Management of the fund is also overseen by Jeffrey Greenberg, the chairman and CEO of Marsh & McLennan, and by A.J.C. Smith, the retired chairman of the corporation.

Trident II raised $1.4 billion in 1999. The Trident Partnership raised $667 million in 1994. Prior to the formation of the Trident Funds, MMC Capital helped create six insurance companies and recapitalise an existing insurance company.

According to the private equity firm’s literature, “MMC Capital's relationship with MMC provides a distinct competitive advantage in identifying attractive investment opportunities, performing due diligence and recruiting proven management teams in the targeted sectors.”

In September 2001, MMC Capital committed $200 million to AXIS Specialty, an insurance and reinsurance platform. Earlier the same year, MMC Capital closed a $250 million technology fund.