Validus Holdings Ltd., the reinsurer that acquired Flagstone Reinsurance Holdings SA, said an investment advisory subsidiary raised $404.4 million of third- party capital.

The funds will be used for investment in collateralized coverage and insurance-linked securities, Bermuda-based Validus said today in a statement distributed by Business Wire.

To contact the reporter on this story: Elizabeth Bunn in New York at Ebunn11@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net