Blackstone-backed insurance underwriter The Fidelis Partnership files for US IPO

Sept 25 (Reuters) - Insurance underwriter ‌TFP Group, better ​known ​as The Fidelis Partnership, filed for a US initial public offering on Friday, as the fall listing window looks to gain ‌momentum after a tepid start.

Expectations for a strong pickup in ⁠the fall IPO window have failed to materialize as surging bond yields and a tightening ‌rate environment weigh on ‌risk appetite. Just four companies have gone public after the Labor Day holiday in September, typically a strong month for the IPO market.

"We're just ​seeing a valuation mismatch between issuers and buyers," said Matt Kennedy, senior ‍strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.

"Investors want ⁠a true IPO discount given the market's choppiness, but it looks like the issuers are holding ​out for valuations they were expecting when they started the IPO process months ago in a hotter market."

Founded by industry ​veteran Richard Brindle, TFP was established as ‌a standalone business in 2023, following a transaction that bifurcated Fidelis Insurance.

TFP originates and underwrites global specialty insurance across ⁠over 150 business lines in more than 140 countries. It has a fee-based business model and is paid placement and profit commissions by its partners.

The Hamilton, Bermuda-based ⁠company reported net income of $127.5 million and revenue of $407.5 million for the six months ​ended June 30, compared with $74.5 million net income and $365.9 million revenue a year earlier.

TFP last year launched a new syndicate at Lloyd's of London in partnership with Blackstone, ‌the world's largest alternative asset manager.

The firm and some of its backers plan to sell shares in the IPO. ‌Besides Blackstone, TFP's shareholders include Alfa Insurance, Capital Z Partners and Travelers Companies.

Morgan ⁠Stanley, Barclays and J.P. Morgan ‌are among the underwriters. ​TFP will list on the NYSE under the symbol "TFP."

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar and ‌Maju Samuel)

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