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KKR To Acquire Janney Montgomery Scott From Penn Mutual

KKR

NEW YORK & PHILADELPHIA–(BUSINESS WIRE)– KKR, a leading global investment firm and The Penn Mutual Life Insurance Company (“Penn Mutual”) today announced the signing of a definitive agreement under which investment funds managed by KKR will acquire Janney Montgomery Scott LLC (“Janney” or the “Company”).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240723034699/en/

Tracing its roots to 1832, Janney is a leading wealth management, investment banking and asset management firm. Janney has over $150 billion in assets under administration, with more than 900 financial advisors providing financial planning, asset allocation, retirement planning and other financial advice and services to clients across 135 offices in the U.S.

Following the close of the transaction, Janney will become a standalone private company that will continue to operate independently.

“We are excited to enter this next chapter in our nearly 200-year history with a new value-added strategic partner. KKR has demonstrated they value our client- and advisor-centric culture and share our deep conviction in the tremendous opportunities ahead for our business,” said Tony Miller, President at Janney. “We look forward to working with KKR to invest further in our growth and enable our talented team to further improve the advice and services we offer our clients.”

“Janney’s well-respected brand, client-centric culture and strong track record of growth have established it as a best-in-class business that we believe is well-positioned to benefit from the significant tailwinds driving demand in the U.S. wealth management market,” said Chris Harrington, a Partner at KKR.

“We have long admired Janney for its high-quality business, growth-oriented mindset and dedication to customer success,” said Simon Greene, a Director at KKR. “We look forward to helping Janney’s talented team leverage the company’s strong foundations to reach even greater heights.”

“This is a great outcome for both Janney and Penn Mutual,” said Dave O’Malley, Chairman, President & Chief Executive Officer at Penn Mutual. “Janney has been a strong investment for Penn Mutual’s general account for the last 40 years. We have been good stewards and are looking forward to watching Janney’s next chapter of growth.”

KKR will support Janney in creating a broad-based equity ownership program to provide all of the company’s 2,300 employees the opportunity to participate in the benefits of ownership after the transaction closes. This strategy is based on the belief that team member engagement through ownership is a key driver in building stronger companies. Since 2011, more than 50 KKR portfolio companies have awarded billions of dollars of total equity value to over 100,000 non-senior management employees.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the fourth quarter of 2024.

KKR is making its investment in Janney primarily through its North America Fund XIII.

Ardea Partners served as financial advisor and Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP served as legal advisors to KKR. WilmerHale served as legal advisor to Penn Mutual.

About Janney Montgomery Scott LLC

Janney is a leading full-service wealth management, capital markets, and asset management firm dedicated to putting client needs first. We are committed to providing individuals, families, businesses, and institutions with tailored financial advice to help reach their personal or business goals. We focus on building strong relationships, supported by a foundation of trust and performance. With a history of strength and stability, an ability to execute, and a culture of service and collaboration, we continue to deliver on our mission of offering the highest standard of success in financial relationships. Janney is a wholly-owned, independently operated subsidiary of The Penn Mutual Life Insurance Company, a member of the Financial Industry Regulatory Authority, the New York Stock Exchange, and Securities Investor Protection Corporation. Additional company information is available at www.janney.com.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing worldclass people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About The Penn Mutual Life Insurance Company

For over 175 years, Penn Mutual has empowered individuals, families and businesses on the journey to achieve their financial goals. Through our partnership with Financial Professionals across the U.S., we help generations grow stronger by instilling the confidence and reliability that comes from a secure financial future. Penn Mutual and its affiliates offer a comprehensive suite of competitive and robust solutions to meet the unique needs of Financial Professionals and their clients, including life insurance, annuities, wealth management and institutional asset management. To learn more, including current financial strength ratings, visit www.pennmutual.com.

Media Contacts

For KKR
Julia Kosygina and Emily Cummings
(212) 750-8300
media@kkr.com

For Janney Montgomery Scott
Bradd DelMuto
(215) 665-6595
corporatecommunications@janney.com

For Penn Mutual
Stephanie Kensy
Penn Mutual
215-956-8337
corporatecommunications@pennmutual.com

Source: KKR

 

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Synova makes 7.3x return on the sale of InsurEvo

Synova Capital

Growth investor Synova is delighted to announce that an agreement has been reached for the sale of travel insurance data specialist, InsurEvo Group (including AllClear Insurance, InsureandGo, and JustCover; together “InsurEvo” or the “Group”), to US headquartered specialist insurance provider, NSM Insurance Group. The transaction, which remains subject to regulatory approval, will generate a return of 7.3x invested capital to Synova.

Following Synova’s investment, and under CEO Chris Rolland’s leadership, InsurEvo has transformed in scale and profitability, increasing revenues fivefold to £60m and placing £150m of GWP into the market this year, a sixfold increase in the investment period.

InsurEvo’s growth was delivered through a significant investment in best-of-breed technology, including actuarial AI, to capitalise on its unique data sets and the delivery of a highly effective multi-year sales and marketing strategy. Operating under the AllClear Insurance, InsureandGo and JustCover brands, the Group has provided cover to more than 4 million travellers, additionally allowing essential access to travel cover to people suffering from pre-existing medical conditions. InsurEvo employs over 350 staff across five offices in three countries, a near fourfold increase in employees since Synova’s investment.

Chris Rolland, CEO of InsurEvo, noted:

“I have enjoyed every minute of my partnership with Synova; their knowledge of our industry, their understanding of the building blocks of growth, and the discipline that comes from having a focused investor has been invaluable in accelerating the growth of the business.

“We’re absolutely thrilled to join forces with NSM to help us continue to grow and scale the business. Over the last two decades, our dedicated and talented team has helped us grow into the force we are today, and we look forward to extending that growth with NSM. NSM has the prowess and proven track record to help our business grow by expanding our distribution channels — further enhancing our technology platforms and expanding our global market reach. We are confident that NSM will lead to a bright future filled with growth, development, and success.”

David Menton, a Managing Partner of Synova and Non-Executive Director of InsurEvo Group, commented:

“The InsurEvo journey, in partnership with Chris Rolland, Cameron Jack, and their talented team, adds another chapter to Synova’s highly successful Financial Services story. The substantial scaling was achieved by harnessing AllClear’s strong reputation in the impaired travel market, its proprietary pricing database, and combining this with the vision of an experienced and ambitious leadership team.

Achieving these levels of growth, and generating outsized returns for our investors, was made more rewarding given InsurEvo’s clear social purpose. We remain grateful to the team, and to the Chair, Dr Ian Owen, for their energy and their vision, and wish them well on the next stage of their journey with Geof McKernan and his colleagues at NSM.”

Geof McKernan, CEO of NSM Insurance Group, said:

“Today marks an exciting new chapter for AllClear and InsureandGo. We are delighted to welcome these renowned brands to the NSM family,” said Geof McKernan, CEO & Founder of NSM Insurance Group. “Chris has done a tremendous job growing both brands and leading process and technological change while maintaining strong growth. Together, we will drive continued innovation to deliver exceptional value to our clients and expand our global presence.”

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EVORIEL: Fresh impetus for a key French player in property management services

Bridgepoint

The Residential Property Management Services previously part of Nexity have now been united under the EVORIEL group and will continue to grow with the support of new shareholder, Bridgepoint. Drawing on its experience in real estate and its nationwide reach, EVORIEL brings together more than 200 agencies, three iconic brands, over 3,100 highly committed employees and nearly one million clients.

True to its tradition and commitment to clients, the EVORIEL group offers a unique blend of complementary services through three iconic brands:

  • Lamy, setting the standard in on-the-ground services with a presence in over one hundred cities across France,
  • Oralia, a network of premium agencies offering tailored services in the heart of major urban areas,
  • Richardière, specialising in property management for institutional and major private investors.

 

EVORIEL will ensure all clients continue to benefit from the services provided by its in-house broker, Lamy Assurances, an unrivalled expert in real-estate insurance solutions, issuing more than 110,000 contracts per year.

 

“These time-honoured brands have a tangible reputation for trustworthiness and are the driving force behind our commitment to provide tailored solutions to our clients, whether they are co-owners, landlords, tenants, large private investors or institutional investors. This fresh impetus reinforces our determination to remain at the forefront of the property management services market while continuiing to bring only the best to our clients. Our belief in profitable and responsible growth is underpinned by the quality of the people with whom we work, and especially our shareholder Bridgepoint. We are committed to a set of core values that make all the difference: (i) always acting as a socially responsible company while balancing the needs of our employees and clients; (ii) pledging to ensure that our clients’ projects stand the test of time without compromising the future; (iii) asserting our role as a trusted third party while reliably advising our clients and ensuring both ethics and  transparency for all actors in our ecosystem.”

Karine Olivier, CEO of EVORIEL.

 

With its emphasis on personal connections and deep involvement in community life, the EVORIEL group is cementing its position as a leading force in transforming property management services for cities and their residents.

“We are eager to continue this new journey alongside our employees, clients and partners. This new departure opens up really promising prospects. That is why the group remains firmly focused on the future and will continue to promote sustainable cities with strong local networks to ensure a sustainable and equitable ecological transition, drawing on its decades of experience on the ground.”

Thierry Smadja, Deputy CEO of EVORIEL.

 

“We are thrilled to begin working with everyone at EVORIEL to unlock the full potential of a sector we hold in high esteem and understand well. We are confident that together, through the synergies developed with Nexity, we can continue to cement its position as a leading player in property management services.”

Vincent-Gaël Baudet, Head of Bridgepoint Europe in France.

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Blue Owl Capital to Acquire Kuvare Asset Management for $750 Million

Blue Owl logo
  • Acquisition will add up to $20 billion in AUM for Blue Owl and support the launch of Blue Owl Insurance Solutions
  • Blue Owl also invested $250 million in Kuvare UK Holdings

NEW YORK, April 3, 2024 — Blue Owl Capital Inc. (“Blue Owl”) (NYSE: OWL), a leading alternative asset manager, announced today it has entered into a definitive purchase agreement to acquire Kuvare Insurance Services LP (dba Kuvare Asset Management) (“KAM”) for $750 million. 

KAM is a boutique investment management firm focused on providing asset management services to the insurance industry, including Kuvare UK Holdings (“Kuvare”). Blue Owl will fund the KAM acquisition through a combination of $325 million in cash and $425 million in Blue Owl Class A common stock. The KAM acquisition is expected to close in the second or third quarter of 2024 and remains subject to customary regulatory approvals and other closing conditions and specified termination rights. Upon closing of the KAM acquisition, most KAM employees are expected to join Blue Owl. In addition, there is potential for up to a $250 million earnout subject to certain adjustments and achievements of future revenue targets.

Separately, Blue Owl made a long-term investment in Kuvare today, purchasing $250 million of preferred equity. This investment creates long-term alignment between Blue Owl and Kuvare and provides valuable growth capital to Kuvare’s insurance companies, each of which will become new asset management clients of Blue Owl. Founded in 2015, Kuvare is a technology-enabled financial services firm operating several insurance and reinsurance businesses and has become a top 20 fixed and indexed annuity writer in the United States. Kuvare’s business segments include retail, institutional reinsurance and specialty insurance advisory services.

In addition to the preferred equity investment, Blue Owl and Kuvare entered into investment management agreements (“IMAs”) that will allow Blue Owl to deploy up to $3 billion of assets across its existing Credit, GP Strategic Capital and Real Estate investment platforms, which can grow over time. Upon the closing of the KAM acquisition, Blue Owl will be allocated up to $20 billion of AUM, in aggregate. Kuvare will continue to manage the overall asset allocations for its insurance businesses and strategic investments. Blue Owl’s IMAs with Kuvare insurance companies will be additive to Blue Owl’s permanent capital base while enhancing Kuvare’s investment capabilities.

These transactions are expected to be accretive to Blue Owl in 2024.

Doug Ostrover, Co-CEO of Blue Owl said: “The creation of Blue Owl Insurance Solutions represents a significant moment in Blue Owl’s journey. Our acquisition of KAM allows us to provide broader solutions to the multi-trillion-dollar insurance market at scale. KAM’s capabilities in investment grade credit and real estate strategies supplement Blue Owl’s existing strength in these asset classes and further accelerate our ability to bring differentiated products and strategies to the market for Kuvare and third-party insurance clients.”

Marc Lipschultz, Co-CEO of Blue Owl said: “Our preferred equity investment in Kuvare reflects our confidence in the growth trajectory of the business; both through its extensive distribution network and proven reinsurance strategy. This partnership with Kuvare anchors Blue Owl’s expanding presence in the insurance channel, greatly complementing our robust institutional and wealth footprint and further diversifying the markets for which we provide investment solutions. In aggregate, we believe these transactions reflect a creative approach to expanding our offerings for the insurance market at an attractive price.”

Dhiren Jhaveri, Founder, Chairman and CEO of Kuvare added: “It is an important and exciting step in the evolution of Kuvare to associate in such an impactful way with an asset manager of Blue Owl’s caliber. We always strive to be excellent stewards of assets entrusted to us by our policyholders and reinsurance partners, and the team at Blue Owl has demonstrated a unique commitment to helping us achieve our goals. We especially look forward to continued collaboration with our many valued KAM colleagues who will join the Blue Owl team at close of this transaction.”

A supplemental investor presentation with respect to the transaction is available on the shareholders section of Blue Owl’s website.

Ardea Partners LP and PJT Partners LP are serving as lead financial advisors to Blue Owl in connection with the transactions. BofA Securities, BMO Capital Markets Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho and its affiliate Greenhill & Co, Morgan Stanley & Co. LLC, and Truist Securities, Inc. are also acting as co-financial advisors to Blue Owl. Kirkland & Ellis LLP acted as legal advisor to Blue Owl.

J.P. Morgan Securities LLC is acting as lead financial advisor to KAM, and as co-placement agent on the investment in Kuvare. RBC is acting as financial advisor to Kuvare and as co-placement agent on the investment in Kuvare. Sidley Austin LLP acted as legal advisor to Kuvare.

Blue Owl Investor Contact
Ann Dai
Head of Investor Relations
blueowlir@blueowl.com

Blue Owl Media Contact
Nick Theccanat
Principal, Corporate Communications & Government Affairs
nick.theccanat@blueowl.com

Kuvare Media Contact
Erica Davis
Director, Corporate Communications
media@kuvare.com 
800-637-6318
About Kuvare Holdings
Kuvare is a technology-enabled financial services platform providing life insurance and annuity products to consumers, reinsurance solutions to institutional markets, advisory services to insurance businesses, as well as asset management solutions. Headquartered in the Chicago area, and founded in 2015, Kuvare has $37 billion of assets and is committed to a sustainable long-term growth strategy. The family of Kuvare companies includes Lincoln Benefit Life Company, Guaranty Income Life Insurance Company, United Life Insurance Company, and Kuvare Life Re (Bermuda), and Ignite Partners. For more information about Kuvare, please visit https://kuvare.com.

 

Forward Looking Statements

Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “would,” “should,” “future,” “propose,” “target,” “goal,” “objective,” “outlook” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions available under applicable securities laws and speak only as of the date made. Blue Owl assumes no obligation to update or revise any such forward-looking statements except as required by law.

These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Blue Owl’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.

Important factors, among others, that may affect actual results or outcomes include the risk of the KAM acquisition not closing on a timely basis, if at all; the inability to recognize the anticipated benefits of strategic acquisitions; costs related to acquisitions; the inability to maintain the listing of Blue Owl’s shares on the New York Stock Exchange; Blue Owl’s ability to manage growth; Blue Owl’s ability to execute its business plan and meet its projections; potential litigation involving Blue Owl; changes in applicable laws or regulations; and the possibility that Blue Owl may be adversely affected by other economic, business, geo-political and competitive factors.

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Wide Group acquires Milan-based Assileo Broker SRL

Pollenstreet

Pollen Street today announces that Wide Group has completed the acquisition of Assileo Broker Srl (“Assileo”). Assileo is a Milan-based commercial broker with capabilities across transportation, construction, energy and corporate insurance, with a presence in Milan and Genoa. The business was founded in 2000 by current management, who will remain in the business post completion.

Wide Group is the leading technology-led commercial broking consolidator in Italy, and the acquisition of Assileo will expand both the group’s scale and capability in the Milan market and add a presence in Genoa. Wide has a strong M&A pipeline of potential targets to build on the momentum of this acquisition, driven by a highly fragmented insurance broking market in Italy, with significant potential for synergistic consolidation.

Gianluca Melani, Co-founder & Managing Director of Wide Group, commented:

“We are thrilled to welcome Flavio Sestilli, Michele Leonarduzzi and Giovanni Battista Campo, and all the colleagues from Assileo Broker into the Wide Family. With this operation, we mutually enrich ourselves with a history and expertise in insurance that has been passed down for three generations, along with new synergistic skills that align with the current setup of our operational model. This operation reaffirms the excellence and innovation we aim to offer to our consultants and their respective clients.”

Ian Gascoigne, Partner at Pollen Street Capital, added:

“We are pleased to welcome Assileo to the Wide family. Assileo adds additional specialist insurance expertise, scale and geographic reach to Wide’s offering, and builds on the strong momentum Wide is seeing in its acquisition strategy.”

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The CareVoice Completes Nearly $10 Million Series B Funding to Drive Further Global Expansion and Product Innovation

Apis Partners

London, March 20th 2024, Insurtech Insights Conference – The CareVoice (the “Company”), the leading global embedded health enabler for insurers, announces successful completion of its Series B funding, raising a total of nearly $10 million, in a round led by Apis Insurtech Fund I (the “Fund”). This funding will be instrumental in accelerating the Company’s growth, expanding collaborations with insurers across regions, and investing in the next generation of the CareVoiceOS platform.

The Fund is managed by Apis Partners LLP (“Apis”), a UK-based asset manager known for its commitment to, and success in generating, both financial returns and positive social impact. The team at Apis utilises its sector expertise to lead value creation initiatives at its portfolio companies, enhancing the lives of millions of people served by these businesses. Since the Fund’s first investment in CareVoice in 2019, Apis’ team has contributed to several areas of expansion and development at the Company. These efforts include supporting business development activities to attract enterprise customers, leveraging Apis’ network in the insurance industry, and engaging stakeholders to facilitate these partnerships. Apis’ investment philosophy aligns with the Company’s mission to revolutionize the way insurers engage with their customers for a healthier life. Together, CareVoice and Apis will work to deliver personalized, data-driven health and wellness solutions to insurance customers worldwide.

Over the past two years, CareVoice has achieved significant milestones and solidified its position as a global leader in embedded health solutions. The Company has expanded and formed new major collaborations with insurers, serving millions of customers across more than 15 countries worldwide. Additionally, the Company has established strategic partnerships with global players, including reinsurers and digital distribution enablers, to enhance its capabilities and jointly serve insurers.

CareVoice has demonstrated strong unit economics and maintained cash-flow neutrality over the past 18 months. The Company experienced a remarkable doubling of revenues in 2023 compared to the previous year.

Investing in Innovation: Next Generation CareVoiceOS Platform

The new funding will enable CareVoice to accelerate its growth trajectory further and drive innovation in its CareVoiceOS platform. The platform’s next generation will enhance scalability, reduce implementation costs, and empower insurers to implement or upgrade customer solutions seamlessly. The recent release of the CareEngage framework has demonstrated increased customer engagement and perceived value among end-users.

Accelerating Growth with Strengthened Leadership Team

To support its expansion plans, CareVoice has established a European headquarters in Luxembourg. Concurrently, the Company has strengthened its leadership team with the appointment of Simon Guest as Chief Commercial Officer and will leverage his industry experience at Generali Vitality and AXA to accelerate CareVoice’s global growth and forge transformative collaborations with insurers worldwide. Additionally, Jan Velich, one of its co-founders, has taken a new role as Chief Experience Officer, leading the expansion of CareVoice reach and impact with its existing major clients. These strategic moves further fuel the Company’s mission to unlock the next growth frontier for the life and health insurance industry by adopting embedded health solutions at global scale.

Sebastien Gaudin, CEO and Co-founder of CareVoice, said: “We are collaborating with two types of insurers, those early movers in the health and wellness space who are already aware of the gaps in their capabilities, and new entrants who want to accelerate, avoiding the pitfalls and challenges other insurers have faced. Both types are looking to generate additional profitable insurance business directly and through attracting and retaining healthier customer profiles. We see an exciting future development of this partnership approach which delivers mutual growth.”

Matteo Stefanel and Udayan Goyal, Co-Founders and Managing Partners at Apis Partners, stated: “The success of CareVoice is clear, demonstrated by the revenue growth of 2x year-on-year by the end of 2023, and the geographical expansion to 15 countries worldwide. With this Series B commitment from Apis Insurtech Fund I, we look forward to continuing to support CareVoice as it matures further and leads the embedded health category as a global leading software for insurance companies.”

CareVoice’s success is further exemplified by testimonial from existing customer. Aura Rebelo, CEO of Fully Wellness Ecosystem at Prudential International Insurance, commented, “CareVoice has been instrumental in translating Prudential’s total wellness vision into reality by contributing to the delivery of Fully SuperApp, offering a holistic wellness user experience across physical, mental and financial wellness. CareVoice’s service ecosystem and data orchestration, its engagement framework as well as its continuous upgrade and innovation with evolving ecosystem are three critical capabilities for Fully Wellness Ecosystem to continuously expand the values for Prudential, its other business partners and their respective customers.”

CareVoice’s achievements and ongoing growth reflect the increasing demand for embedded health solutions and its potential to transform the insurance industry.

-END-

About CareVoice

The CareVoice is on a mission to make insurance more human, with health at its core. We are a global embedded health leader that enables insurers to engage with their customers through configurable user journeys that leverage an open digital health ecosystem, delivered in any front-end solutions.

CareVoice has teams based across Asia and Europe, with insurer clients across Asia, Europe, the Middle East, Africa and America regions. Graduated from SOSV-backed Orbit Startups program (2016), Ping An Tech Accelerator (2018) and Insurtech Munich Hub (2020), CareVoice received multiple awards and ranked amongst the top 100 Global Insurtechs.

The CareVoice is backed by specialized Software, Healthtech and Insurtech VCs such as Apis Partners, LUN Partners or DNA Capital, and completed its Series A (2019) and its Series B (2024). www.thecarevoice.com

About Apis Partners

The Apis Group (“Apis”) is an ESGI-native global private equity and venture capital asset manager that supports growth-stage financial services and financial infrastructure businesses by providing them with catalytic growth equity capital. Collectively Apis, through its team of around 40 professionals with deep industry expertise, manages or advises on total committed capital from investors (including drawn and invested capital) of US$1.2 billion.

Including its headquarters in London, Apis has representation in eight countries across Europe, Asia, and Africa. Apis is highly conscious of the developmental impact that the provision of growth capital for financial services and financial infrastructure businesses in global markets can achieve, and as such, financial inclusion and financial wellness are core tenets of Apis’ impact investment approach. https://apis.pe/

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Nordic Capital to invest in leading digital insurance payments network One Inc to drive continued growth and product innovation

Nordic Capital

Strategic investment will support One Inc’s mission to digitalize and modernize the insurance industry

Nordic Capital, one of the most active and experienced investors in Technology & Payments globally, today announced that it will join Great Hill Partners, a private equity firm that invests in high-growth, disruptive companies, as an investor in One Inc (the “Company”), a digital payments platform specializing in modernizing the insurance industry in North America. Great Hill Partners invested in One Inc in 2020 and will retain an equal stake to Nordic Capital alongside a significant continuing investment from the Company’s current management team.

Founded in 2012, One Inc’s mission is to help insurance companies digitalize and modernize payments through cutting-edge technology that places customers at the center of every transaction. From premium payments to claims disbursement, One Inc strives to ensure a frictionless experience, merging all payment flows into one comprehensive platform. One Inc Digital Payments Platform is designed to integrate with modern and legacy insurance core systems, engaging policyholders through the channels they use most while securely processing payments through those same channels. Today, the Company has close to 500 employees, handles annual payments of USD 70 billion, and has one of the largest networks in the industry with over 700,000 vendors. One Inc proudly serves over 240 customers in the insurance industry, including Amica Insurance, MAPFRE, SageSure, Tower Hill Insurance, Wawanesa Insurance, and others.

The insurance industry faces a landscape defined by digital transformation, economic shifts, and environmental disruption, prompting it to innovate and optimize. One Inc’s payment network is well-positioned to accelerate and drive transformation, currently demonstrating over 65% year-over-year revenue growth.

Nordic Capital has over 30 years of experience accelerating the growth of innovative technology companies and is set to leverage its deep sub-sector and operational knowledge to create value and boost One Inc’s ambitious plans. Nordic Capital also has a long history of investing in partnerships with owners, founders, and management. It has made 30 technology investments in companies with an aggregate enterprise value of over EUR 24 billion. It made its first investment in Payments 20 years ago and has since partnered with several innovative payment companies, including Point International, Bambora, Trustly, and PayWithMyBank. In addition, Nordic Capital has invested in a variety of financial services businesses – including insurance carriers – for many years, bringing an extensive network of industrial advisors and an in-house operations team. This transaction represents Nordic Capital’s third investment in an innovative software company in North America in the last couple of months.

Fredrik Näslund, Partner and Head of Technology & Payments, and Mohit Agnihotri, Partner, Nordic Capital Advisors, said: “Nordic Capital is a longtime admirer of One Inc, which has stood out for solving the unique and complex challenges of digital payments in the insurance industry. Through its innovative solutions, the Company is transforming and simplifying payments for the entire insurance ecosystem benefitting carriers, consumers, and vendors alike. The management team, together with Great Hill Partners, has achieved impressive results. Nordic Capital is thrilled to be joining them for the next leg of the Company’s growth journey and utilizing our combined deep sector experience, extensive network, and active owner approach to fuel One Inc’s ambitious growth plans even further.”

Matt Vettel and Nick Cayer, Managing Directors at Great Hill Partners, said: “One Inc has been at the forefront of helping to shape the future of the insurance industry through digitalization and transformative products that seek to make the payment process as seamless as possible. Led by a seasoned and talented management team, the Company has consistently demonstrated its ability to innovate for customers. Since our initial investment in One Inc, the business has rapidly grown volume processed by 13x and is still early in market adoption, so we continue to have strong conviction in its potential to further scale. We welcome Nordic Capital to the investor group and look forward to combining our expertise with their deep industry experience to support the Company’s continued growth.”

Ian Drysdale, CEO of One Inc, said: “We have built an amazing business in collaboration with our insurer clients by putting them at the center of everything we do. We continue to see exponential growth and excellent customer loyalty, underscoring the strength of our model and industry-leading payments network of more than 700,000 vendors. The sector experience and resources that Nordic Capital and Great Hill bring to this partnership will fuel additional product innovation and drive new opportunities for growth as we continue to provide solutions that improve efficiency and boost revenue for today’s insurers.”

In addition to One Inc, Great Hill’s current portfolio of financial technology and payment companies includes NMI, Paytronix, Vanco and VersaPay. Prior financial technology and payment investments include Accelerated Payment Technologies, AffiniPay, BillMatrix, Chrome River, Confirmation.com, Custom House, MineralTree and Vigo.

Terms of the transaction were not disclosed, and the investment is subject to customary regulatory approvals.

Raymond James, J.P. Morgan and TD Cowen are serving as financial advisors and Goodwin Procter LLP as legal advisor to One Inc. William Blair is serving as financial advisor and Kirkland & Ellis as legal advisor to Nordic Capital.

 

About One Inc

One Inc is modernizing the insurance industry through a unified and frictionless payment network. Focusing only on the insurance industry, One Inc helps carriers transform their operations by reducing costs, increasing security, and optimizing customer experience. The comprehensive end-to-end digital payments platform provides expanded payment options, multi-channel digital communications and rapid digital claim payments, even for more complex insurance use cases. As one of the fastest-growing digital payments platforms in the insurance industry, One Inc manages billions of dollars per year in premiums and claim payments. For more information, please visit www.oneinc.com.

 

About Nordic Capital

Nordic Capital is a leading sector-specialist private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and Industrial & Business Services. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested over EUR 25 billion in more than 145 investments. The most recent entities are Nordic Capital XI with EUR 9.0 billion in committed capital and Nordic Capital Evolution with EUR 1.2 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Advisors have local offices in Sweden, the UK, the US, Germany, Denmark, Finland, Norway, and South Korea. For further information about Nordic Capital, please visit www.nordiccapital.com.

“Nordic Capital” refers to, depending on the context, any, or all, Nordic Capital branded entities, vehicles, structures, and associated entities. The general partners and/or delegated portfolio managers of Nordic Capital’s entities and vehicles are advised by several non-discretionary sub-advisory entities, any or all of which are referred to as “Nordic Capital Advisors.”

 

About Great Hill Partners

Founded in 1998, Great Hill Partners is a private equity firm targeting investments in high-growth companies across the software, digital commerce, financial technology, healthcare, and digital infrastructure sectors. With offices in Boston and London, Great Hill has raised over $12 billion of commitments and invested in more than 95 companies, establishing an extensive track record of building long-term partnerships with entrepreneurs and providing flexible resources to help middle-market companies scale. Great Hill has been recognized for its industry leadership, being ranked #4 in the 2023 HEC Paris-Dow Jones Mid-Market Buyout Performance Ranking on March 6, 2024, which evaluated fund performance of 632 leading private equity firms between 2010-2019[1]. For more information, including a list of all Great Hill investments, visit www.greathillpartners.com.

 

Media contacts:

Nordic Capital
Katarina Janerud
Communications Manager, Nordic Capital Advisors
+46 8 440 50 50
katarina.janerud@nordiccapital.com

US media contact – Brunswick Group
NordicCapital@brunswickgroup.com


Great Hill Partners
FGS Global
greathill@fgsglobal.com
+1 212 687-8080


One Inc
Ana Pallas
Stanton Public Relations & Marketing
apallas@stantonprm.com
+1 415 867-6262

 

 

[1] Great Hill Partners did not submit a nomination to be considered for this list nor did it pay to be selected to/included on the list.

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AnaCap and TA backed MRH Trowe completes 4 bolt-on acquisitions in January

Anacap

AnaCap, a market-leading partner for founders and entrepreneurial management teams across services, technology and software within the European financial ecosystem, today announces that portfolio company MRH Trowe (“MRHT”), one of the largest independent P&C commercial brokers in Germany, has completed four bolt-on acquisitions in January. The four acquisitions are Bavaria AG, Vertoura Versicherungsmakler GmbH & Co. KG, Frank Rauch & Kollegen Finanz-und Versicherungsmakler GmbH and ASSPERT Versicherungsmakler GmbH & Co. KG. The companies were acquired with effect from 1st January 2024 and the respective management teams will remain on board.

The acquisition of Bavaria AG, one of the leading insurance brokers for yachts, private aircraft, classic cars and holiday properties, introduces a comprehensive range of insurance solutions for exclusive movables and valuables to MRHT. The acquisition of Vertoura, a renowned broker in the tourism sector, strengthens MRHT’s position in advising and insuring corporate clients within this industry.

Frank Rauch & Kollegen Finanz-und Versicherungsmakler GmbH brings MRHT a substantial customer base within the private client and SME market segment, while the acquisition of ASSPERT Versicherungsmakler GmbH & Co. KG, a company that focuses on commercial customers in the trade and crafts sector, complements MRHT’s geographical presence in south-west Germany, with a particular focus on purchasing associations.

With these four acquisitions, MRHT has further demonstrated its long-term, targeted growth strategy, starting 2024 on a successful note, as it continues to create value for customers, both in terms of sector-specific expertise and geographical proximity and personal support.

These developments represent a new chapter for AnaCap and its strategic partnership with MRHT as well as TA Associates (“TA”) following its investment into the company in 2023 and the successful closure of AnaCap’s maiden Continuation Fund, enabling the continuation of its investment hold periods for MRHT (and portfolio company GTT). These acquisitions exemplify AnaCap’s ambition for its growth partnership with TA, to further accelerate MRHT’s growth trajectory and cement its position as a leading insurance broker in the DACH region.

2023 was a very successful year overall for AnaCap. In addition to the closing of the Continuation Fund, it completed three portfolio company exits, for an average realised return of 3.6x and 44% IRR. This track record further endorses AnaCap’s strategy to institutionalise entrepreneurialism, scaling high-quality founder-led businesses in the European lower-mid-market.

Tassilo Arnhold, Co-Managing Partner at AnaCap, commented:
“We are delighted to announce this excellent start to the year for MRHT through this accelerated M&A programme, as the Founders and management team, together with TA continue MRHT’s ambitious growth plans across the DACH region. This early success entirely endorses our vision for the continued hold period afforded by the Continuation Fund. Our expectation is for a significantly amplified ultimate return for our LPs through this new structure.”

Ralph Rockel, Chief Executive Officer at MRH Trowe, added:
“We are focussing on targeting partners who expand our range of services and create added value for customers as part of an integrated offering. This also includes comprehensive integration management, which ensures a high level of synergy and opens up long-term growth potential.”

Rockel concluded:
“All four brokerage houses contribute additional, established expertise from which other areas of the MRH Trowe brand also benefit. At the same time, the integration into MRHT’s overall product offering also ensures the future viability of these companies and further expands the range of services available for customers.”

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hyperexponential raises $73m Series B to expand its mission-critical insurance pricing platform

hyperexponential
Battery Ventures leads, Andreessen Horowitz (a16z) co-invests, and Highland Europe increases position

hyperexponential, the global leader in pricing decision intelligence (PDI) software, today announced completion of its $73m Series B funding round led by global technology-focused investment firm Battery Ventures, with participation from leading Silicon Valley investor a16z, and existing Series A investor Highland Europe, which increased its holding.

hyperexponential serves insurance and reinsurance companies in the multi-trillion-dollar global property-casualty insurance industry, which protects individuals and businesses from a wide array of risks. As factors such as climate change, geopolitical unrest, and cyberterrorism have increased the frequency and severity of risks, the industry has pursued next-generation risk pricing methods to augment or supplant traditional pricing models for a changing world.

The platform of choice for the world’s most significant insurers

hyperexponential’s PDI platform, hx Renew, enables insurers to leverage large and alternative datasets, develop and refine rating tools rapidly, and employ sophisticated machine learning approaches to price risk and make data-driven pricing decisions at the portfolio and individual level. Since the company’s Series A in 2021, hyperexponential has grown sales 10x while staying profitable, serving some of the world’s largest insurers, including Aviva, HDI, and Conduit Re.

This latest round of financing will support hyperexponential’s expansion into the United States, as it targets opening its New York office this year. It will also enable increased investment in new product capabilities to serve growing client demand in adjacent insurance markets, including the SME insurance sector. The company plans to double its global team to over 200 in the next year.

Sponsoring its Series B investment and joining hyperexponential’s board as a director is Battery Ventures Partner Marcus Ryu, Co-founder, Chairman, and former CEO of Guidewire Software (NYSE:GWRE), which has grown into one of the world’s largest Insurtech companies since its 2001 founding.  Also joining the company’s board is experienced Andreessen Horowitz General Partner Angela Strange.

Pricing for today’s frontier of risk

The hx Renew platform, named Insurance Insiders’ 2023 ‘Insurtech Product of the Year,’ enables customers like Convex and Conduit Re to sharpen their competitive edge with enhanced agility, efficient risk transfer, and aggregate loss avoidance. In 2023, Aviva’s Global Commercial and Specialty team was able to build 20 models in 9 months, unlock machine learning capabilities and improve the speed and accuracy of their pricing and underwriting decisions, even as the frequency and severity of risks continues to evolve continuously.

“The insurance industry is at the forefront of a rapidly changing world and must find ways to understand and respond to that change in risk profile,” said Amrit Santhirasenan, hyperexponential CEO and Co-founder. “We’ve focused on building a capital-efficient, independent business that was both high-growth and sustainable from the outset. Although we have more cash-on-hand than we’ve raised, we wanted to bring on new expertise in our target markets as we continue our growth into new verticals and geographies. We are delighted to have attracted a world-class set of investors who bring an unparalleled combination of experience, expertise, and support to hyperexponential in the next phase of our expansion.”

“I believe hyperexponential is among the most compelling new entrants in insurtech I have seen in over twenty years of serving the P&C insurance industry,” said Marcus Ryu. “As former software engineers and actuaries with top tier commercial insurers, Amrit and Michael each bring a deep practitioner’s grasp of the new requirements for risk pricing. hyperexponential is rapidly becoming an indispensable tool for the insurance industry to thrive in a future that is not reliably the same as the past.”

Angela Strange, General Partner at a16z says, “Pricing risk is the most critical function of an insurance carrier. Yet, most actuaries still work with cumbersome Excel models and are constrained by legacy software that limits their ability to dynamically incorporate new data and more sophisticated analytical techniques. Amrit and Michael’s actuarial experience helped them design the system the insurance market needed, and hyperexponential has achieved incredible traction with technical users and executives alike as they’ve completed multiple industry-leading deliveries around the world. hx Renew is rapidly becoming the operating system for pricing risk in the global insurance market. We are thrilled to join forces with the hyperexponential team as they launch in the US and expand beyond specialty lines”.  

Laurence Garrett and David Blyghton, Partners at Highland Europe, said: “The hyperexponential team have been superb to work alongside since we first invested in April 2021.  The business has repeatedly beaten its forecasts and we are delighted to support the company with additional capital. Working alongside entrepreneurs like Amrit and Michael is what makes the VC role awesome.”

To learn more about hx Renew and how transforming your approach to pricing can help you move the needle on profitability, contact our experts here.

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KKR Completes Acquisition Of Remaining 37% Of Global Atlantic

KKR

NEW YORK & HAMILTON, Bermuda–(BUSINESS WIRE)– KKR & Co. Inc. (NYSE: KKR) and The Global Atlantic Financial Group LLC (together with its subsidiaries, “Global Atlantic”) today announced the closing of the previously-announced transaction in which KKR is acquiring the remaining 37% of Global Atlantic, increasing KKR’s ownership to 100%.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240102056918/en/

KKR acquired a majority of Global Atlantic in 2021, and since that time, KKR has served as Global Atlantic’s asset manager, offering access to its global investment and origination capabilities for the benefit of Global Atlantic’s policyholders.

“Since day one, Global Atlantic has been a great fit for KKR, both from a business and cultural standpoint. With this new ownership structure in place, we look forward to even closer collaboration with Global Atlantic so that we can realize more of the synergies that we have uncovered in the first three years of our strategic partnership,” said Joseph Bae and Scott Nuttall, Co-Chief Executive Officers of KKR.

“KKR and Global Atlantic are a powerful combination. Our shared culture and commitment to excellence continues to enhance our ability to think – and invest – longer-term and deliver compelling solutions for our clients and policyholders. We are thrilled for what lies ahead as a wholly-owned subsidiary of KKR,” said Allan Levine, Co-Founder, Chairman & Chief Executive Officer of Global Atlantic.

Global Atlantic will continue to be led by its management team and operate under the Global Atlantic brand.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About Global Atlantic

Global Atlantic Financial Group is a leading insurance company meeting the retirement and life insurance needs of individuals and institutions. With a strong financial foundation and risk and investment management expertise, the company delivers tailored solutions to create more secure financial futures. The company’s performance has been driven by its culture and core values focused on integrity, teamwork, and the importance of building long-term client relationships. Global Atlantic is a wholly-owned subsidiary of KKR, a leading global investment firm. Through its relationship, the company leverages KKR’s investment capabilities, scale and access to capital markets to enhance the value it offers clients.

Forward-Looking Statements

This press release contains certain forward-looking statements. Forward-looking statements relate to expectations, estimates, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts, including but not limited to the statements with respect to: the transaction to acquire all outstanding shares of Global Atlantic; and operation of Global Atlantic following the closing of the transaction; expansion and growth opportunities and other synergies resulting from the transaction. The forward-looking statements are based on KKR’s beliefs, assumptions and expectations, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KKR or are within its control. If a change occurs, KKR’s business, financial condition, liquidity and results of operations, including but not limited to dividends, reported earnings, and capital structure may vary materially from those expressed in the forward-looking statements. The following factors, among others, could cause actual results to vary from the forward-looking statements: failure to realize the anticipated benefits within the expected timeframes from the planned transaction with Global Atlantic; unforeseen liabilities or integration and other costs of the Global Atlantic transaction and timing related thereto; changes in Global Atlantic’s business; distraction of management or other diversion of resources within each company caused by the transaction; retention of key Global Atlantic employees; Global Atlantic’s ability to maintain business relationships following the transaction; the volatility of the capital markets; failure to realize the benefits of or changes in KKR’s or Global Atlantic’s business strategies; availability, terms and deployment of capital; availability of qualified personnel and expense of recruiting and retaining such personnel; changes in the asset management or insurance industry, interest rates, credit spreads, currency exchange rates or the general economy; underperformance of KKR’s or Global Atlantic’s investments and decreased ability to raise funds; changes in Global Atlantic policyholders’ behavior; any disruption in servicing Global Atlantic’s insurance policies; the use of estimates and risk management in Global Atlantic’s business; and the degree and nature of KKR’s and Global Atlantic’s competition. All forward-looking statements speak only as of the date hereof. KKR does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law. In addition, KKR’s business strategy is focused on the long term and financial results are subject to significant volatility.

Additional information about factors affecting KKR is available in KKR & Co. Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 27, 2023, quarterly reports on Form 10-Q for subsequent quarters and other filings with the SEC, which are available at www.sec.gov.

Past performance is not indicative or a guarantee of future performance.

Media:
Liidia Liuksila
(212) 750-8300
media@kkr.com

Source: KKR & Co. Inc.

 

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