The reinsurance arm of Third Point, the hedge fund run by Daniel S. Loeb, has raised a little over $275 million in its initial public offering, just meeting expectations.
The stock sale was priced at $12.50 a share, the bottom end of an estimated price range that went up to $14.50 a share.
Wednesday’s stock sale was a for Third Point, which dove into the world of reinsurance â€" in which firms essentially backstop insurance firms’ operations â€" at a time when other hedge funds were setting up beach heads in the sector.
Other hedge fund players in the sector include Greenlight Capital, run by David Einhorn, and SAC Capital, run by Steven A. Cohen.
In its prospectus, Third Point Reinsurance said that it planned to use its cut of the I.P.O. proceeds for general corporate purposes and to increase its underwriting and investment capacity.
The offering is being led by JPMorgan Chase, Credit Suisse and Morgan Stanley.
