Fermat Capital Management

What Fermat Capital Management does

Fermat Capital Management, LLC is a privately held alternative investment manager founded in 2001 by brothers John and Nelson Seo, headquartered in Westport, Connecticut. The firm manages $9.7 billion in assets as of June 30, 2025, across two core strategies: Insurance-Linked Securities (ILS), primarily catastrophe bonds that transfer reinsurance risk to capital market investors, and Trade Finance via investments in confirmed trade receivables (CRPs) that provide short-term floating-rate exposure to non-financial corporate credit. The firm serves institutional investors including pension funds, sovereign wealth funds, endowments, charitable foundations, insurers/reinsurers, family offices, and qualified private investors across North America, Europe, the UK, Japan, and Asia-Pacific.

The firm operates a proprietary quantitative platform, branded as CatAPM® (Catastrophe Asset Pricing Model), for ILS relative-value pricing, risk analysis, and portfolio construction that departs from standard bell-curve return distributions and conventional correlation measures. In 2024, Fermat expanded into casualty ILS through the launch of Fermat Casualty Management, Inc., broadening its product surface beyond property catastrophe. Distribution is handled through a global team of regional investor relations directors plus long-standing third-party partnerships, most notably a distribution relationship with GAM Ltd. dating to 2004 and a 2019 sub-advisory mandate with Pacific Asset Management for the Pacific Life Investment Grade Trade Receivables Fund. The firm is SEC-registered under the Investment Advisers Act of 1940 and GDPR-compliant, and co-founder John Seo has held advisory roles with the U.S. Treasury on risk-sharing mechanisms.

Name

Fermat Capital Management

Legal name

Fermat Capital Management, LLC

Website

https://fcm.com

Company type

Private

Founded year

2001

Operating status

Operating

Headcount range

11–50 employees

Short description

Fermat Capital Management is a private alternative investment manager managing $9.7 billion across insurance-linked securities (catastrophe bonds) and trade finance strategies, serving pension funds, sovereign wealth funds, endowments, insurers, and family offices globally through its proprietary CatAPM® pricing model.

Ownership category

akta.pro rank

Product category

Alternative Investment Management

NAICS

Portfolio Management and Investment Advice (523940), Other Financial Investment Activities (5239)

SIC

Investment Advice (6282), Asset-Backed Securities (6189)

akta.pro primary industry

Catastrophe Bonds & Insurance-Linked Notes (ILS) (FSACABAO)

akta.pro secondary industries

Catastrophe Bond / ILS-Linked Reinsurance (FSAOACAM), Insurance-Dedicated Multi-Manager Platforms (e.g., ILS / Cat Bond FoF) (FSAHAKAK), Insurance General Accounts (Institutional Asset Owners) (FSAAAGAG), Credit Risk Transfer (CRT) & Mortgage Credit Securities (CAS/STACR/ACIS) (FSALAFAH)

Keywords

• Insurance-linked securities
• Catastrophe bond management
• Trade finance investments
• Alternative fixed income
• Risk transfer solutions

Headquarters

HQ city

Westport

HQ country

United States

HQ region

North America

Offices8 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Investment Management Fees: Hedge fund-style investment management fees typically comprising a management fee plus performance fee (carried interest), consistent with their position as an alternative investment manager managing $9.7 billion in assets for institutional clients.

Go-to-market motion2 records

Distribution channels4 records

Marketing channels5 records

Core offering

Fermat Capital Management is an alternative investment manager that manages portfolios investing in Insurance-Linked Securities (ILS), including catastrophe bonds and related instruments, and in Trade Finance/Confirmed Trade Receivables (CRPs). The ILS strategy provides institutional investors returns uncorrelated to traditional financial markets by supplying capital to the re/insurance sector, while the Trade Finance strategy invests in short-term floating rate confirmed trade receivables offering non-financial corporate credit exposure. Both strategies are supported by the firm's proprietary CatAPM® pricing and portfolio construction technology.

Product overview

Fermat Capital Management offers two core investment strategies: Insurance Linked Securities (ILS) and Trade Finance/Confirmed Trade Receivables. The ILS strategy encompasses catastrophe bonds and related instruments that provide capital to the reinsurance sector with returns uncorrelated to traditional markets. The Trade Finance strategy focuses on confirmed trade receivables providing short-term floating rate investments in non-financial corporate credit. The firm also operates a proprietary CatAPM® model for pricing and portfolio optimization, and maintains an ESG policy framework for investment evaluation. In 2024, Fermat expanded with Fermat Casualty Management, Inc. offering new commingled ILS strategies.

Differentiator

Problem solved

Functional benefit

Products and services

• Insurance-Linked Securities (ILS) Strategy Investment strategy providing capital market investors a mechanism to provide new capital to the re/insurance sector, offering risk-return independence where returns are uncorrelated with traditional financial markets. Includes catastrophe bonds and related instruments targeting institutional pension funds, sovereign wealth funds, endowments, insurers, family offices, and private investors.
• Trade Finance / Confirmed Trade Receivables (CRPs) Strategy Investment in confirmed trade receivables providing high-quality, non-financial corporate credit risk in short-term floating rate products, with returns independent from obligor credit risk. Targets institutional investors seeking short-duration floating rate exposure with better margins than comparable corporate bonds.
• Fermat Casualty Management, Inc. (Commingled Casualty ILS Strategies) Newly launched casualty ILS offering and commingled ILS funds that provide investors a direct partnership structure with Fermat, expanding beyond catastrophe ILS into casualty and broadening access for institutional and qualified investors.

Quantifiable outcome

• ILS provide ~$50 billion additional hurricane coverage to Florida insurance markets, helping spread risk globally
• +2 more outcomes

Named customers4 records

Segments6 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature1 record

Partnerships

Six partnerships are on record, tiered major, core and minor.

• Asian Development BankmajorStrategic or Co-development Partner · 4 May 2026Fermat invested in ADB's first-ever catastrophe bonds totaling $160 million across two sovereign bonds for Kyrgyzstan and Tajikistan, representing first-of-a-kind innovation in development finance enabling Central Asian nations to access catastrophe risk financing.
• Flood Re (UK)majorStrategic or Co-development Partner · 27 February 2026Fermat Capital Management was among hedge fund investors participating in Flood Re's first cat bond sale, with Flood Re planning to build a pipeline of bonds modeled after the UK's Pool Re terrorism reinsurance program to address rising flood risks.
• Pacific Asset ManagementcoreChannel Partner/ Reseller/ Distributor · 1 January 2019Pacific Asset Management launched the Pacific Life Investment Grade Trade Receivables Fund with Fermat Capital Management as sub-advisor in 2019, enabling distribution of trade finance strategies to a broader investor base.
• World BankmajorStrategic or Co-development Partner · 1 January 2017Fermat participates in World Bank catastrophe bond issuances including for Caribbean Catastrophe Risk Insurance Facility, Pacific Alliance countries (Mexico, Chile, Colombia, Peru), Jamaica, Philippines and lower-income World Bank member countries. As of September 2025, ~70 cat bonds with over $17 billion used World Bank bonds as collateral.
• GAM Ltd.coreChannel Partner/ Reseller/ Distributor · 1 January 2004GAM Ltd. handles funds marketing and distribution for Fermat's strategies since 2004, with GAM Australia covering New Zealand distribution and GAM Investments handling various distribution roles.
• Hannover ReminorOthersHannover Re is mentioned as one of the major players actively building new vehicles and partnerships in the ILS space alongside Fermat, Blackstone, and Allianz, reflecting the broader competitive landscape rather than a specific partnership.

Scale indicators5 records

Recent moves8 records

Expansion highlights6 records

Direct peers

• Nephila Capital: One of the largest dedicated ILS investment managers historically, focused on catastrophe bonds and weather risk transfer for institutional investors; now part of Brookfield. Directly comparable to Fermat in offering cat bond and weather-linked investment strategies to similar institutional client base.
• Securis Investment Partners: Specialist ILS investment manager that builds and manages cat bond portfolios for institutional investors. Closely comparable as a niche, dedicated ILS asset manager competing for the same LP capital.
• Twenty Capital Management: Investment manager focused on insurance-linked strategies including catastrophe bond funds. Operates dedicated ILS funds serving institutional allocators, directly comparable to Fermat's core strategy.
• Leadenhall Capital Partners: Specialist ILS and reinsurance-linked investment manager offering cat bond and insurance-focused funds to institutional investors. Direct competitor in the dedicated ILS asset management space.
• ILS Advisers: Independent investment advisory firm specialized in catastrophe bond portfolio construction for institutional clients. Comparable as a boutique ILS asset manager and advisor.

Broad incumbents

• Aon Securities: The capital markets and ILS placement arm of Aon, originating, structuring, and placing catastrophe bonds. Comparable as an institutional ILS intermediary and previously employed multiple Fermat senior hires (Hoenig, Lane, Pham).
• Swiss Re Capital Markets: Capital markets division of one of the world's largest reinsurers, originating and investing in cat bonds and ILS alongside its underwriting franchise. Comparable as a vertically integrated ILS issuer and investor at much larger scale.
• Munich Re: Global reinsurer that both issues and invests in ILS through dedicated vehicles. Comparable as a major institutional participant in the cat bond market at significantly larger scale and broader offering.
• Hannover Re: Major global reinsurer named in the data as a key competitor building new ILS vehicles and partnerships. Comparable as a large ILS participant with broader risk transfer and reinsurance offerings beyond Fermat's specialist focus.

Others

• Pacific Asset Management: Distribution partner of Fermat as sub-advisor on the Pacific Life Investment Grade Trade Receivables Fund since 2019. Comparable as an adjacent institutional asset manager participating in the same trade finance investment theme.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

Compliance2 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Fermat Capital Management