Karson Capital Limited (KCL or Karson) is a wholly-owned subsidiary of Karson Management (Bermuda) Limited, a specialist financial solutions structuring firm. Karson was established in 2007 to provide an alternative approach (e.g. capital-markets-funded) for financing “qualifying collateral” and “admitted assets” for major financial institutions. Since December 2009, Karson Collateral has completed 16 K-Note transactions totaling $8.3 billion and has become an established provider of collateral and capital financing solutions.
The centrepiece to the Karson offering is a unique security in the form of a fully-funded/secured demand note (the K-Note) that was designed to meet the highest level of regulatory requirements.
The Karson management team includes veterans of RISC Ventures LLC and its 100% own subsidiary, The RISConsulting Group LLC, and have several important insurance market risk transfer/financing innovations to their credit.
As the Head of Insurance Derivatives at Citibank, Derrell Hendrix (founding shareholder of both RISConsulting and Karson) structured and executed the first-ever Cat Bond (Kover) in 1994. RISConsulting has assisted its clients in developing and executing a number of first-of-a-kind transactions, including:
- the first catastrophe reinsurance portfolio swap – second-ever Cat Bond (K2)
- the first life reinsurance new business strain securitization
- the first life insurance block securitization transaction
- the first aircraft portfolio contingent liability insurance program