BlackRock Inc., the world’s largest money manager, and Evan Greenberg’s ACE Ltd. raised $800 million for a reinsurance venture, at the low end of the announced range.

ABR Reinsurance Capital Holdings Ltd. raised the funds through a private placement, the companies said in a statement on Wednesday. ACE will be the sole source of reinsurance risks ceded to the venture, while BlackRock will manage investments. Both ACE and BlackRock will hold minority stakes in the venture, the companies said.

ABR Re, to be based in Bermuda, initially sought to raise as much as $1.3 billion, according to a regulatory filing in March. Reinsurers assume risks from primary insurers and invest premium revenue before claims come due.

ABR Re “has the potential to be return-on-equity accretive,” Clifford Gallant, an analyst with Nomura Holdings Inc., said in a note Tuesday before the statement was released. “We expect that ACE will go from paying to shift away risk, to being paid to cede it.”

–With assistance from Noah Buhayar in Seattle.