Keyhaven announces €260 million equity funding commitment for DARAG in support of global growth plans
Keyhaven Capital Partners Ltd (“Keyhaven” or “Keyhaven Capital”) announces an equity funding of up to €260 million for DARAG, its leading legacy insurance acquirer, to support growth plans for the business. Funding is provided by Crestview Partners (“Crestview”) via their European partner Aleph Capital Partners LLP (“Aleph Capital”).
DARAG, a Keyhaven portfolio company, specialises in taking inactive or discontinued (run-off) businesses from direct insurers and reinsurers. The Company has completed 26 transactions across Europe since its inception in 2009.
The new 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. Keyhaven also strengthened the management team with the appointment of Stuart Davies as Executive Chairman in 2017 and Tom Booth as Chief Executive Officer with effect from 23rd July 2018.
Stuart Davies, Executive Chairman of DARAG, said: “We have a very clear path to become a leading global legacy insurance business. We have come a long way in Europe already, 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.”
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.”
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 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 favourable market dynamics for legacy acquirers.”
Completion is subject to regulatory approvals, anticipated to be towards the end of 2018.
DARAG is a leading international insurance and reinsurance company specialising in the assumption of discontinued business and the provision of capital relief solutions. Building on its strong European roots, since 2009 DARAG has signed 26 run-off transactions in 15 countries with a value of in excess of €740 million. For more information, please visit: www.darag-group.com
Keyhaven Capital is an independent London-based private equity investment firm focussing on European businesses with enterprise values typically less than €100 million. Led by a team of Partners with deep investing and operating experience, Keyhaven’s diverse team represents 17 nationalities and engages actively with companies across Europe with in-house language and cultural skills. The firm executes a unique sourcing and investment strategy, accessing private small cap companies with best in class local partners from around Europe. For more information, please visit: (www.keyhavencapital.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).
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).