CASE STUDIES
Primus Guaranty, Ltd. (“Primus” or the “Company”) is a leading provider of credit default protection covering single-name investment grade corporate and sovereign obligations. Generally, the protection takes the form of a credit default swap, which efficiently reduces credit exposure for financial institutions.
Company's Situation – Primus was formed by an experienced management team from the following group of insurance companies: Aegon, XL Capital, and Radian Group. The strategic partners provided sophisticated risk management expertise; however, the Company required a financing partner that could provide substantial capital, drive value creation, and bring an independent view to governance.
PCG CP Solution – PCG CP provided $30 million of convertible preferred stock that enabled the Company to aggressively build its book. PCG CP ’s investment and involvement in the governance helped to align the interests of the strategic partners and allowed the management team to focus on creating a successful Company.
Performance Since PCG CP Investment – Primus consistently exceeded forecasts and the Company rose to the forefront of the rapidly growing credit swap market. In October 2004, Primus completed an initial public offering on the New York Stock Exchange under the symbol “PRS”.
Company Website – www.primusfinancial.com