Carbon Underwriting Limited, a delegated authority underwriting specialist with its own Lloyd’s syndicate, has signed an agreement for a significant growth equity investment from FTV Capital, a global sector-focused growth equity firm.
The transaction was led by Mike Vostrizansky, Richard Earnshaw and Max Weber from FTV.
Carbon said that the investment will accelerate growth across its delegated underwriting platform, fund continued development of its proprietary Graphene data and analytics technology, deepen its AI capabilities and support its international expansion, including the build-out of its US business.
The delegated authority underwriting specialist noted that it will continue to operate independently, led by its existing management team.
Carbon reportedly retains the culture, strategic focus and underwriting discipline that have underpinned its success to date, with those foundations expected to continue guiding the business as it enters its next chapter.
Howden Capital Markets & Advisory served as exclusive financial advisor to Carbon, while Houlihan Lokey and Acrisure Re Corporate Advisory & Solutions served as financial advisors to FTV Capital.
Browne Jacobson and Norton Rose Fulbright supported Carbon on legal counsel, while Skadden served as buyer counsel. Jamieson Corporate Finance advised management on the deal.
Jacqui Ferrier, Carbon CEO, commented, “At Carbon, we set out in 2018 with a mission to revolutionise the world of delegated underwriting and establish a global benchmark. We remain committed to that mission and to building an independent, market-leading platform, serving clients globally.
“We are now building on our outstanding success so far with the backing of further experienced investors in FTV who have a strong track record and meaningful presence in the US and broader MGA market, bringing both credibility and strategic value.
“Ben and I would like to extend a heartfelt thank you to Jeniv, Thomas and the team at Apiary Capital – our investors since 2023 – for their belief in our business and the support they have provided to allow us to scale quickly and responsibly.
“We are also deeply grateful to our managing agents Asta, Lloyd’s, our partners, coverholders, capital providers, reinsurers, brokers and the entire Carbon team for their support and commitment throughout our journey from SIAB through to now. And of course, a special thank you to our co-founder and friend Nick Tye, who has played such an important part in the Carbon story.”
Ben Laidlaw, Carbon managing director, added, “We are delighted with the enthusiasm for Carbon that we have seen through this fast-moving process, underlining the strength of the business and the value that investors perceive, as well as the strong interest in the Lloyd’s and wider London insurance market.
“The last three years have seen us grow considerably, providing exceptional service for clients new and old supported by our ground-breaking Graphene platform, and our new investors are fully committed to our approach. We are very excited about the next steps working with FTV.”
Mike Vostrizansky, partner at FTV, noted, “Carbon has cracked one of the most attractive, underserved corners of the insurance market, and its data-led approach to delegated underwriting resonates strongly with where the industry is heading.
“The U.S. represents a substantial, largely untapped opportunity for that proposition, and it’s where FTV can add differentiated value, drawing on our experience scaling financial technology businesses, our network of U.S. carriers and distribution partners, and FTV Propel to help Carbon build the team and capabilities required to support its next phase of growth.”
Richard Earnshaw, partner at FTV, said, “Carbon has established itself as a scaled, profitable and highly differentiated platform in one of the most attractive segments of the Lloyd’s market.
“Its focus on low-volatility SME risk, combined with the real-time visibility and portfolio control delivered by Graphene, has produced an exceptional and consistent underwriting track record and strong customer retention. We have deep conviction in Carbon’s data-driven approach and its multiple levers for growth, and we are excited to partner with Jacqui, Ben and the rest of the Carbon team to capitalise on the opportunity ahead.”
Jeniv Shah, partner at Apiary Capital, added, “We are incredibly proud to have been a part of Carbon’s story since our investment in 2023. Jacqui, Ben and the rest of the team have built a truly special business, with a wonderful culture, and they have done an excellent job trebling the size of the business and diversifying it into new markets over the last three years. We have no doubt that with FTV on board the business is well placed to continue its stellar growth.”.
