Apollo Group Holdings Limited, the Lloyd’s specialist insurance and reinsurance group that includes Apollo Syndicate Management Ltd, has announced a $90 million investment from British private equity firm Alchemy Partners.
Apollo is the largest independent, management owned business in the Lloyd’s market, including its flagship Apollo Syndicate 1969 and the $90 million investment was agreed with the Alchemy Special Opportunities Fund IV LP.
Alchemy specialises in investments into distressed and undervalued or underperforming businesses, or special situations, but clearly sees an opportunity for Apollo to grow its footprint further in the Lloyd’s market at this time.
Apollo said that the investment will help it to build on its “hybrid model”, as a provider of underwriting and syndicate management services for third parties alongside its own balance sheet.
Apollo said it is also committed to digital transformation and entering new and emerging markets through the continued roll-out of its augmented underwriting approach.
David Ibeson, Apollo CEO, commented on the capital raise, “We are delighted to be forming this new partnership with Alchemy. It reinforces our belief in the continued opportunity provided in the Lloyd’s market. The investment by Alchemy underscores the benefits to our clients and partners of our experienced and talented team, recently bolstered by the appointment of James Slaughter as CUO in April and Hayley Spink as COO in May, combined with the backing of well-respected and informed investors.”
Dominic Slade and Toby Westcott, Partners at Alchemy, added, “The Lloyd’s insurance market continues to offer an excellent investment opportunity. Working alongside talented management teams is a central component of our approach to create and grow value and we are excited to be partnering with the Apollo team.”
TigerRisk Capital Markets & Advisory and Willkie Farr & Gallagher (UK) LLP advised Apollo on the investment process.
Alchemy was advised by reinsurance broking unit Guy Carpenter Securities, Deloitte, Macfarlanes and Clyde & Co.
The investment transaction remains subject to customary conditions, regulatory approvals and filings.
