30 July 2018 – DARAG, a leading legacy acquirer owned by Keyhaven Capital Partners, announces an equity funding of up to €260 million to support growth plans for the business. Funding is provided by Aleph Capital and Crestview Partners.
Aleph and Crestview’s capital commitment follows a period of significant strategic development for DARAG, which has seen it grow substantially in the rapidly expanding European insurance run-off market and advance its plans to develop an effective platform for the build-out of its US operations. It has also enhanced its management team with the appointment of Stuart Davies as chairman in 2017 and Tom Booth as chief executive officer on the 23rd July 2018.
Stuart Davies, chairman of DARAG said: “We have a very clear path to become a leading global legacy insurance business. We have already come a long way in Europe, where we are a market leader, and will now be bringing our expertise to the United States and beyond, where we see substantial demand for skilled legacy acquirers such as DARAG. Aleph and Crestview’s significant investment will support our ambitious expansion targets and their strong track-record in the insurance sector makes them an excellent partner.”
Hugues Lepic, Founder and CEO of Aleph said: “DARAG is on an exciting trajectory in the rapidly expanding and increasingly important legacy segment of the P&C insurance industry. In the coming years we see significant opportunities to drive growth globally and we are very excited to be partnering with Keyhaven and DARAG’s management team to support the company in this next important phase of its development.”
Richard DeMartini, Partner and Head of Financial Services at Crestview Partners, said “Crestview is excited to partner with the management team at DARAG as we believe the company has significant growth potential and is well positioned to benefit from the positive market dynamics for run-off acquirers.”
Claus Stenbaek Managing Partner of Keyhaven Capital said: “DARAG is a great success story. With the additions of new equity partners, and an outstanding management team, the business has huge momentum to deliver on its mission to be a leading global legacy insurance business. I am delighted that Aleph and Crestview share the same enthusiasm for DARAG and we are looking forward to collaborating closely as we take the business forward.”
Completion is subject to regulatory approvals, anticipated to be towards the end of 2018.
DARAG Group was advised by Macquarie Capital (Europe) on the transaction.
DARAG is a leading international insurance and reinsurance company specialising in the assumption of discontinuedbusiness and the provision of capital relief solutions. Building on its strong European roots, since 2009 DARAG has completed 23 run-off transactions in 15 countries with a value of in excess of €740m. For more information, please visit: www.darag-group.com
Aleph Capital Partners LLP is an independent investment firm based in London focussing on capital investments in European-based companies. Aleph works closely with management teams, shareholders and other stakeholders to create adaptable capital solutions aimed at delivering value growth over a period of years. Its approach to capital commitment and governance is tailored to the specific situation of each company it invests in and its capital commitment can range between €100 million and €400 million. Aleph was founded in 2013 by Hugues Lepic, formerly Head of the Merchant Banking Division and Head of the Principal Investment Area (PIA) of Goldman Sachs in EMEA (www.aleph.com).
About Crestview Partners:
Founded in 2004, Crestview Partners is a value-oriented private equity firm focused on the middle market. The firm is based in New York and manages funds with over $8 billion of aggregate capital commitments. The firm is led by a group of partners who have complementary experience and distinguished backgrounds in private equity, finance, operations and management. Crestview’s senior investment professionals primarily focus on sourcing and managing investments in each of the specialty areas of the firm: financial services, media, energy, and industrials (www.crestview.com).
Keyhaven Capital Partners is an independent London-based private equity investment firm focusing on European businesses with enterprise values typically less than €100 million. The firm has developed a unique investment strategy, accessing private small cap companies with best in class local partners from around Europe (www.keyhavencapital.com).