Ryan Specialty has formed a new collateralized reinsurance vehicle called Ryan Alternative Capital Re Ltd. (RAC Re).

RAC Re will deliver additional capacity to Ryan Specialty Underwriting Managers’ (RSUM) portfolio of syndicated delegated authority P&C insurance business. RSUM is the delegated authority underwriting division within Ryan Specialty.

“We believe this sidecar’s unique scope makes it the first of its kind in the (re)insurance marketplace,” said Miles Wuller, CEO of RSUM, in a statement. “RAC Re is a multi-year, multi-class P&C vehicle that provides capacity for specialty cat and non-cat property and casualty risks across our diverse, largely non-correlated portfolio of MGAs.”

This flagship sidecar will provide reinsurance capital on a risk-attaching basis over a multi-year period to further support the potential growth of RSUM’s delegated platform. RAC Re raised approximately $400 million in committed capital from funds managed by Flexpoint Ford LLC and Sixth Street.

RAC Re will provide RSUM with an anticipated $900 million in multi-year premium capacity and has been launched through a strategic trading relationship with global specialty (re)insurer AXIS Capital. AXIS will support the transaction via its Lloyd’s of London syndicate 1686.

Deutsche Bank Securities acted as the sole structuring and placement agent for this transaction. Sidley Austin LLP and Conyers, Dill and Pearman served as legal counsel to Ryan Specialty in the transaction. Mayer Brown LLP served as legal counsel to Flexpoint and Sixth Street.