Resolution raises £600m financials fund

Opportunities for consolidation in the financial services sector – particularly among life insurance and asset management firms – have led Resolution, like Marfin and Global Investment House earlier this year, to access the public markets.

Clive Cowdery, the British insurance industry entrepreneur, has raised a £600 million (€691 million; $876 million) fund, Resolution, to invest in under-valued assets in the financial services industry. The fund was raised via a share placement on the London Stock Exchange.

Financial services: under-valued

The placement could potentially raise up to £660 million if Citi chooses to exercise its 60 million share over-allotment option.

The fund will invest in both listed and unlisted financial services companies with a view to restructuring and consolidation in the sector, particularly among life insurance and asset management firms.

The chaos in the financial services sector has led a number of asset management firms, which see great potential for consolidating under-valued financial assets, to build up war chests. Athens-listed investment firm Marfin Investment Group this week appointed bookrunners on a proposed €5 billion placement, the proceeds of which will be used to capitalise on an expected consolidation round in the Greek banking sector. In July Kuwait-based investment bank Global Investment House raised $500 million via a London listing of private equity vehicle Global MENA Financial Assets.