CC Capital has completed a $250mn investment in Westaim Corp., a Canadian company that will operate as an insurance and asset management platform.
The deal also includes Arena Investors LP, a global institutional asset manager, and Ceres Life Insurance Co., a cloud-native annuity business.
The transaction, which is fueled by a $250 mn investment in Westaim by CC Capital, brings together Westaim, Arena Investors, a growing and diversified global institutional asset manager, and Ceres Life Insurance Company, an advantaged, cloud-native and scalable annuity platform led by industry veteran Deanna Mulligan.
As part of a unified platform, these businesses are expected to generate a powerful value creation flywheel, driving continued growth and stability for both the insurance and asset management businesses.
CC Capital stated that the platform will combine the capabilities of these firms to support growth and stability across insurance and asset management. Westaim CEO Cameron MacDonald said the agreement is expected to create significant value for shareholders.
Deanna Mulligan, CEO of Ceres Life, said the transaction marks a shift in the annuity sector, introducing a cloud-enabled provider focused on accessible annuity products and improved service for retirees.
This milestone represents a new chapter for the annuities industry, as we prepare to introduce a purpose built, cloud-enabled annuities provider capable of providing simple, accessible annuities products and superior service to better meet the growing needs of retirees.
Deanna Mulligan, CEO of Ceres Life
“With the support of our partners at CC Capital, Westaim and Arena, I am confident we are positioned to both scale our platform and redefine the retirement experience, bringing more customers the financial security and peace of mind they deserve, while creating sustainable value for our investors.”
CC Capital and Westaim initially disclosed the partnership last year, outlining plans to build a combined insurance and investment platform.
“We are pleased to establish such a compelling platform, bringing together technology enabled insurance and proven asset management capabilities that are both highly complementary and capable of driving significant growth across both businesses,” said Chinh Chu, Founder and Senior Managing Director of CC Capital and Executive Chair of the Westaim Board of Directors.
We believe that there are significant opportunities to expand this platform, and we look forward to partnering with Cam, Dan, Deanna and the Westaim team to realize the potential of this partnership and maximize the benefits for investors and policyholders alike.
“The completion of our strategic combination with Arena and Ceres Life, underpinned by CC Capital’s investment, is expected to allow us to generate significant value creation for our shareholders,” said Cameron MacDonald, CEO of Westaim. “I am thrilled to work alongside Chinh and the team at CC Capital, whose investment and deep expertise have enabled us to create an integrated insurance and asset management platform with meaningful potential for long-term growth.”
“We have invested heavily in our team and infrastructure to create a global asset manager uniquely capable of investing across a range of corporate, real estate, structured finance and securities investments covering the full duration spectrum to serve a variety of institutional partners,” said Dan Zwirn, CEO and Chief Investment Officer of Arena.
“This strategic combination builds on our strong foundation, enabling us to leverage stable insurance assets from Ceres Life and the continued support of our existing limited partners to fuel long-term growth, further scale the Arena platform and deliver sustainable returns to both Ceres Life’s policyholders and our investors.”
Pursuant to an investor rights agreement among Westaim, Wembley Group Partners, an affiliate of CC Capital, and Arena Investors Group Holdings dated as of the date hereof, Mr. Chu has been appointed Executive Chair of the Westaim Board and Ian Delaney has transitioned to Vice Chair of the Westaim Board.
In addition, pursuant to the Investor Rights Agreement, the size of the Westaim Board has been increased to 11 with four additional CC Capital nominees having been appointed as directors of Westaim, being Ms. Mulligan, Douglas Newton, Matthew Skurbe and Richard DiBlasi, as well as one director mutually selected by Westaim and CC Capital having been appointed, being Menes Chee. Mr. Zwirn will also be an observer on the Westaim Board. John Gildner and Lisa Mazzocco resigned from the Westaim Board.
Additionally, Mr. MacDonald is continuing to lead Westaim as CEO, and Mr. Zwirn remains CEO of Arena. Ms. Mulligan is serving as CEO of Ceres Life.
Further, Mr. Skurbe has been appointed as Chief Financial Officer and Chief Risk Officer of Westaim and will also transition into a senior advisor position at CC Capital as Vice Chairman of the firm.
In connection with the closing of the transaction, the size of the AIGH Board of Managers has been increased to nine and CC Capital has appointed five members to the AIGH Board, being Messrs. Chu, Newton, Skurbe, DiBlasi and Chee. The remaining members of the AIGH Board are Mr. Zwirn, Mr. MacDonald, Lawrence Cutler and Lisa Mazzocco.
