Dale Underwriting Partners (Dale), the trading name for Dale Managing Agency Limited’s Lloyd’s Syndicate 1729, has entered into a strategic partnership with CVC, a leading global private markets manager with €161 billion of assets under management.
According to the announcement, CVC funds will invest into Dale to provide the capital to replace the current third-party capital providers and support business growth, which ultimately will result in CVC funds acquiring a majority stake in the business.
Founded by Duncan Dale in 2014 and operating through Lloyd’s Syndicate 1729, Dale is a specialist provider of re/insurance lines across six core classes.
The company has witnessed strong growth within recent years and today controls more than $500 million of premiums.
At the same time, this investment is set to secure a large pool of long-term stable capital to fund Dale’s growth, capitalizing on the competitive global position of the Lloyd’s market and the Dale team’s expertise and strong position.
The transaction is subject to customary regulatory approvals and is expected to close between Q423 and Q124.
Moreover, Dale was advised by Macquarie Capital and Norton Rose Fulbright in the transaction.
While CVC were advised by Howden Tiger Capital Markets & Advisory, Aon Capital Advisory and Aon’s Strategy and
Technology Group, EY, Weil, and Bryan Cave Leighton Paisner.
It is important to note that CVC funds have extensive prior experience of investing in and growing regulated financial services and insurance companies globally. This includes in the Lloyd’s market through investments into Brit Insurance and RiverStone International.
Duncan Dale, founder and Chief Executive of Dale, said: “We are excited to be partnering with CVC to back Dale’s next phase of growth. We have an aligned vision on where we would like to take the business and believe they will be a great partner given their long-term investment horizon and approach to supporting us to create value.”
Martin Iacoponi, Managing Director at CVC, commented: “The specialty insurance and Lloyd’s markets are attractive markets for patient capital investors like CVC funds and a focus for our financial services strategy. We have been impressed by Duncan and his team’s approach in building a high-quality player over the last decade. We are very pleased to partner with the Dale team and look forward to supporting the business with CVC funds’ capital and our experience to help them grow and develop further.”
