Zurich Financial Slates $2 Billion for Private Equity

October 31, 2000 (PLANSPONSOR.com) - Zurich Financial Services will invest $2 billion in private equity and hedge funds, as part of a plan to establish a global alternative asset management operation.

The Swiss insurance giant announced today that the money would be invested in two funds to be launched by Capital Z Investment Partners, a New York-headquartered joint venture established by Zurich and U.S. alternative investment firm Capital Z Partners.

Five hundred million dollars will go to a new private equity fund, while the remaining $1.5 billion is slated for a fund investing in a range of vehicles including hedge funds, structured products and private equity funds.

The new firm will develop a broad range of alternative investment products, which will be offered through Zurich’s global distribution channels.

Zurich, with some $435 billion in assets under management, owns US-based Scudder Kemper Investments and Threadneedle Investments in the UK. 

Capital Z Partners currently runs two funds, a $1.85 billion private equity vehicle focusing on financial services companies and a $1.5 billion alternative investment fund. Zurich is a major investor in both funds, but the new company will not assume management of these funds.

– Nevin Adams           editors@plansponsor.com