Validus Holdings, a Bermud-based reinsurer, has said that it has joined with other investors in capitalizing AlphaCat Re 2011, a newly formed special purpose sidecar reinsurer.

Validus said AlphaCat Re has been set up to write collateralized reinsurance and retrocessional reinsurance and will provide capacity through ultimate net loss, index based and reinstatement premium protection products.

AlphaCat Re 2011 was established in May 2011 with $180m of contributed capital, out of which Validus invested $50m.

Private investment funds or accounts managed by and under the control of Serengeti Asset Management served as lead equity investor in AlphaCat Re 2011.

According to the Validus, AlphaCat Re will write business for an initial risk period of 1 June 2011 through 31 December 2012, which may be extended under certain circumstances.

Validus Underwriting Services will underwrite business for AlphaCat Re 2011, for which it will be paid a commission for originating the business and a profit commission based on the vehicle’s underwriting results for the 2011 and 2012 underwriting years.