The London-based, insurance-focused investment firm Beat Capital Partners said it is creating a dedicated underwriting vehicle, funded by Bain Capital Credit, which will provide capital through its Syndicate 4242 to support Beat’s underwriting businesses operating in the Lloyd’s of London market.
In conjunction with the transaction, Bain Capital will become a significant minority investor in Beat and will join the company’s board of directors, according to the announcement by John Cavanagh, chairman of Beat.
Beat specializes in helping specialty underwriters set up their own companies. It supples startup funding, underwriting capacity, along with regulatory, information technology and back office services.
Since its inception in 2017, Beat has invested in start-up businesses that are now generating gross premiums of over $300 million in 2020. Among the underwriters it has invested in are Brace, Chord Re, Tarian and Syndicate 4242, which it acquired in 2018. Beat’s investments operate independently of one another under their own management and brand.
Financial terms of the private transaction were not disclosed. The transaction is expected to close in late 2020.
Beat is owned by its management, including founders John Cavanagh and Tom Milligan, along with global insurance investor Paraline Group and specialty wholesale insurance distributor AmWINS Group.
Boston, Mass.-based Bain Capital Credit is a global credit specialist with approximately $40 billion in assets under management.
Evercore, GC Securities, RPC and Andrew Holderness Consultancy advised Beat on the transaction. Kirkland & Ellis, PWC, Holman Fenwick and Towers Watson advised Bain.
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