K2 Insurance Services has announced the launch of K2 Collateral Protection Insurance (K2 CPI), a new division focused on intellectual property lending risk solutions.
Brian Delaney, a veteran of the hedge fund industry for more than two decades, will lead the program as managing director.
Delaney is an industry-leading underwriter who brings decades of capital markets experience to his new role. Prior to his appointment, he served as global head of intellectual property solutions for a top insurance company.
Prior to that, the executive served as a short seller for several prominent multi-billion dollar funds, where he was known for his rigorous financial analysis.
K2 Insurance said: “His unique expertise will be instrumental as MGA Group launches K2 CPI to bridge the gap between the insurance market and complex asset-backed lending.”
K2 CPI’s primary product is a complete insurance package for loans secured by all assets, including intellectual property (IP). The product is strategically positioned to capitalize on the global economic shift toward intangible assets.
Historically, companies with significant IP holdings have faced challenges in obtaining financing through traditional debt channels, often resorting to more dilutive equity financing as their sole means of capital.
K2 CPI bridges this liquidity gap by securing underlying collateral value, efficiently converting intellectual property into bankable assets, and freeing up non-dilutive growth capital.
For insured lenders, the product protects against fluctuations in the value of the collateral in the event of default. Additionally, by transferring credit risk to highly rated insurance capabilities, the wrapper facilitates capital relief and expands internal lending limits.
Delaney commented: “I’m delighted to be joining K2 to bring this vital solution to market. I strongly believe that mortgage protection insurance has developed into a sustainable ‘version 2.0’ market solution.
“By focusing on higher credit quality borrowers and leveraging structures that ensure greater coordination between insured lenders and the insurance community, we are delivering a product that represents a balanced trade, creating value for all parties to the transaction. I look forward to applying this improved approach to drive K2’s underwriting profitability and long-term growth.”
“Brian’s arrival marks an important milestone for K2 as we continue to diversify our specialty offerings,” added Bob Kimmel, CEO of K2 Insurance Services. “His unique expertise in capital markets allows us to solve the complex problems of the modern business. We look forward to supporting Brian as he builds this division and providing lenders with the security they need to fund the next generation of growth.”
