Icat owner Paraline has merged with venture capital firm Beat Partners in a deal that will see the recently launched investment house takeover Syndicate 4242, it was announced today.

After the merger, the £110mn Asta-managed syndicate will be renamed Beat Syndicate, the firm said in a statement.

The tie-up will see Paraline - which also owns around a third of Asta - join American Financial Group-owned syndicate Neon as a “strategic investment partner” to Beat, the companies said.

As part of the deal, Paraline executives Bruce Schnitzer and John Struck will join the board of Beat, which is set to be chaired by former Willis Re global CEO John Cavanagh.

Meanwhile, Paul Rayner - who joined Icat as active underwriter from GC Securities earlier this year - will become Beat’s chief financial officer.

Beat currently manages two investments cyber underwriter Tarian and Chord Re, a specialty reinsurance underwriter. Neon’s Syndicate 2468 leads underwriting support for both facilities.

“This deal gives us access to a second Lloyd’s platform alongside Neon 2468 that benefits our existing investee companies and enhances our offering to proven lead underwriters who have the ambition to build their own business,” said Beat co-founder Tom Milligan.

“As a founder investor in Beat, we are thrilled to be partnering with Paraline Group in the next stage of Beat’s evolution,” said Neon CEO Martin Reith.

Meanwhile, Beat said that Icat, which focuses on underwriting property catastrophe insurance to businesses and homeowners across the US would maintain its “longstanding strategic underwriting relationship” with Syndicate 4242.

“This transaction is a great move for our business. It brings together a talented group of established insurance leaders and a powerful shareholder group with a shared, long-term vision,” said Paraline chairman Schnitzer.