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Carlyle raises USD2.1bn for Fortitude Re

Carlyle has raised USD2.1 billion in equity capital for Fortitude Re from existing investors, including strategic co-investor T&D Insurance Group, underscoring their support for the strategy and Fortitude Re’s prospects.

Carlyle expects to contribute up to USD150 million from its balance sheet to this capital raise. The new capital will strengthen Fortitude Re’s position to pursue further growth and provide innovative solutions to the global insurance industry. 
 
In addition, Carlyle has entered into a new strategic advisory services agreement with Fortitude Re through a newly formed insurance advisor, Carlyle Insurance Solutions Management LLC. Under the agreement, Carlyle will provide Fortitude Re with M&A, transaction origination and execution, and capital management services, as well as source new growth opportunities. Fortitude Re will pay Carlyle’s new advisor a recurring fee based on all of Fortitude Re’s general account assets. This fee will adjust within an agreed range based on Fortitude Re’s overall profitability. 

Investors participating in the capital raise will also make a minority investment in the newly formed advisor and share in the fees under the strategic advisory services agreement, creating further alignment among Carlyle and its investors.

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