The investment from Vitruvian will enable CFC to invest further in building its unique portfolio of emerging and specialty risk products, expand its global distribution base, and develop its industry-leading technology platform, in order to build on the Company’s premier position in the specialty insurance market.
The transaction is expected to close in the summer of 2017, subject to regulatory approval.
David Walsh, Chief Executive Officer of CFC, commented: “This is an incredible deal for our staff, carriers, brokers and customers – because it shows that we want to take this business to the next level and build the world’s pre-eminent MGA. We have always been committed to independence and wider employee share ownership and this deal is designed to deliver those two goals.
I would like to thank our existing investors, including Richard Corfield, ex-chairman of RK Harrison, Mike Rees, co-founder of Benfield and Hugh Willis, co-founder of BlueBay Asset Management who have been hugely supportive of CFC during the last five years. We are now extremely excited to welcome Vitruvian as we embark on a new chapter for CFC. We continue to believe that our combination of great people, processes and technology puts us in the best possible position to capitalise on the opportunities we see ahead.”
Joseph O’Mara, a Partner at Vitruvian, added: “Vitruvian is delighted to back David and his team at CFC, at a time of rapid growth for the company and the markets which it serves. The management team have done an extraordinary job in building CFC to be the leading independent UK MGA, and we believe that through continued focus on industry-leading products, customer service, and innovation, CFC is poised for continued success.
Our partnership with management will allow the company to build on recent success. We are delighted to partner with David and the broader management team and look forward to supporting them during the next phase of the Company’s growth.”
About CFC
Headquartered in London, CFC incorporates two trading entities: CFC Underwriting and Modus. Together these businesses are backed by 34 Lloyd’s syndicates and have a global distribution network of over 1,900 broker offices and more than 206,000 customers. Over the last three years, CFC’s gross premium income grew at a compound annual rate of more than 40% to over $200M in 2016.
In 2016, CFC won six awards, including MGA of the Year and Best User of Technology from the Insurance Times Awards 2016, MGA of the Year from the Insurance Insider Honours and Cyber Risk Insurance Provider of the Year at the Commercial Insurance Awards.
The company were advised by Evercore, Norton Rose Fulbright, Deloitte and PwC. The management team was further advised by Wyvern Partners, Macfarlanes and Deloitte.
About Vitruvian Partners
Vitruvian is an independent private equity firm which specialises in growth middle-market investments. Vitruvian focuses on dynamic situations characterised by rapid growth and change across industries spanning information technology, financial services, life sciences & healthcare, media, and business and consumer services. Vitruvian is currently investing the Vitruvian Investment Partnership II, which closed in December 2013 at its self-imposed cap of £1 billion. The firm’s previous investments in the financial services sector include Callcredit, RL 360 and Ebury Partners.
Vitruvian was advised by KPMG (Corporate Finance and Financial Diligence), Kirkland & Ellis, Marlborough Partners, Oliver Wyman, Bearing Point, Marsh and Clyde & Co.
