Genstar Capital has exited its remaining stake in Palomar Holdings, Inc., a specialty property insurer the private equity firm formed alongside current Chief Executive Officer (CEO) Mac Armstrong in 2014.
Palomar launched in 2014 as a new specialty insurance platform company with $75 million in private equity funding from Genstar and the management team.
Since its formation, Palomar has significantly expanded its geographical reach and product footprint, growing its premium base while at the same time diversifying its risk exposure.
In April 2019, Genstar helped Palomar go public and has since monetised its investment, including through two marketed follow-ons and a recent block trade and distribution in May 2020.
Ryan Clark, President and Managing Director of Genstar, commented: “We have a strong focus on the insurance industry and our investment in Palomar demonstrates the power of pairing an extraordinary founder and leader with a compelling business strategy.
“Mac’s vision and leadership of Palomar has brought the company from its founding less than seven years ago to over $2 billion in market capitalization in June 2020. We thank Mac for his partnership and look forward to following all of Palomar’s future success.”
The sale also sees Clark step down as Chairman of the Board of Directors at Palomar, succeeded by Armstrong. Additionally, Richard Taketa, a current member of Palomar’s Board of Directors and a member of Genstar’s Strategic Advisory Board, will serve as lead independent director.
Armstrong commented: “When we founded Palomar, we identified Genstar Capital as a partner that had the right insurance expertise, a proven track-record of investment success, and the creativity and vision to see the opportunity ahead for Palomar. We appreciate all of their support throughout the growth of Palomar.”