MembersCap launches cat bond fund, backs first cat-cyber ILW deal
What's the deal? Members Capital Management (MembersCap)Dealroom has a profile for this one. Try Dealroom → has launched MCM Fund II, a Bermuda-domiciled fund that invests in 144A catastrophe bonds. The firm also disclosed it was the sole investor behind an industry-loss warranty (ILW) that combines property catastrophe and cyber risk triggers in a single limit structure.
Why now? MembersCap launched in 2024 and completed its first reinsurance portfolio through MCM Fund I in July 2025 — the first tokenised, institutional-grade reinsurance investment fund. Fourteen months into that track record, the firm saw demand for a more liquid option.
What's the endgame? The new cat bond strategy sits alongside the private reinsurance fund, letting investors hold reinsurance risk across the liquidity spectrum. "Together they let investors own reinsurance risk across the full liquidity spectrum, from daily-dealing cat bonds through to privately-originated, collateralised deals," said co-founder and chief investment officer Ben Fox.
Who's buying? MembersCap targets both traditional institutional allocators and digital asset investors, using digital ledger technology to widen access. Fox said many crypto allocators are "strongly drawn to the liquidity that cat bonds offer," and that appetite prompted the launch.
The signal: Reinsurance is being pitched as a real-world asset with returns uncorrelated to crypto and equities, drawing a new class of allocators. "We see this as the early stage of a much larger shift in how reinsurance capital is raised and deployed," said co-founder and chief executive officer Patrick Barrett.
Read more: artemis.bm
Image credit: Members Capital Management
