CC Capital, a private investment firm focused on long-term investments, and The Westaim Corporation have announced the completion of their transaction, which will transform Westaim into a fully integrated insurance and asset management platform.
The deal, supported by a US$20 million investment from CC Capital, combines Westaim with Arena Investors LP, a growing global asset management firm, and Ceres Life Insurance Company, a cloud-native annuity platform.
The new platform is expected to generate significant growth and stability for both the insurance and asset management sectors.
Under the terms of an investor rights agreement between Westaim, Wembley Group Partners, an affiliate of CC Capital, and Arena Investors Group Holdings, Chinh Chu has been appointed as executive chair of Westaim’s board, while Ian Delaney moves to the vice chair role.
The Westaim board has been expanded to 11 members, with four new CC Capital nominees joining: Deanna Mulligan, Douglas Newton, Matthew Skurbe, and Richard DiBlasi. Menes Chee, a mutually selected director, has also joined the board. Dan Zwirn will serve as an observer, while John Gildner and Lisa Mazzocco have resigned from the board.
Meanwhile, Cameron MacDonald remains CEO of Westaim, while Dan Zwirn continues as CEO of Arena and Deanna Mulligan remains CEO of Ceres Life. Matthew Skurbe has been appointed CFO and chief risk officer of Westaim and will also transition to a senior advisor role at CC Capital.
On April 3, Wembley Group completed a private placement with Westaim, acquiring US$250 million in securities, including about 12 million common shares at C$28.50 apiece and warrants to purchase about 5.2 million additional shares. If the warrants are fully exercised, Wembley would hold about 44% of Westaim’s common shares.
The proceeds from the placement, along with additional capital, will be used to invest up to US$620 million in Salem Group Partners LP. Salem Partners, which has acquired Ceres Life, will use the remaining funds for investments in insurance, annuities, reinsurance, asset management, and related sectors.
Wembley plans to continuously monitor its investment in Westaim, with the potential to exercise warrants or buy and sell shares. Both Wembley and CC Capital will assess Westaim’s financial condition and may propose strategic changes or new investments depending on market conditions.
Chinh Chu, founder and senior managing director of CC Capital and executive chair of Westaim’s board of directors, noted that there are significant expansion opportunities following the merger and emphasized the potential benefits for both investors and policyholders.
“This platform combines technology-driven insurance and proven asset management capabilities that are highly complementary. It will drive growth across both businesses,” Chu said.
Cameron MacDonald, CEO of Westaim, said the combination with Arena and Ceres Life is expected to create “substantial value” for shareholders.
