SEC asks Marsh for Trident info

Seeking information on related-party transactions, the regulatory body has sent a request to Marsh regarding the insurer’s private equity affiliate, MMC Capital, which manages the Trident family of funds.

Marsh & McLennan Companies announced that it has received a request from the Securities and Exchange Commission for information on its private equity affiliate, MMC Capital.

According to a Marsh announcement, the company will provide documents concerning related-party transactions – instances where a company insider has had direct or indirect interests in, or transactions with, Trident funds, which are managed by MMC Capital to make private equity investments in the insurance industry.

Marsh executives said they would cooperate fully with the investigation.

Marsh is already in trouble with other government bodies. In October, New York State Attorney General Eliot Spitzer filed a suit against the insurer claiming it was rigging insurance bids.

Just this week, MMC Capital announced a plan including Vestar Capital Partners and Friedman Fleischer & Lowe to invest $600 million in Bermuda-based Wilton Re, the first step towards acquiring an unnamed US life insurance company.

Over the summer, MMC Capital raised $1.1 billion (€914 million) in commitments for Trident III to make investments in the global insurance, employee benefits and financial services industry. MMC Capital has raised more than $3 billion since 1994.

MMC Capital is led by chief executive officer Charles Davis.

The private equity affiliate mostly manages third-party capital. But according to a New York Times report, Jeffrey Greenberg, who was ousted in October from his role as CEO of Marsh, was a major investor in previous Trident funds. Fund III barred Marsh directors from committing capital, according to the report.