Private investment firm Cornell Capital LLC and Hudson Structured Capital Management, doing its re/insurance business as HSCM Bermuda, have announced that they have entered into an agreement to acquire Vault Holdings.
Florida-based Vault first launched in October 2017 and offers insurance that combines an advanced technology platform and personalised concierge service designed to meet the needs of affluent clients.
Vault operates under a hybrid business model, acting as a reciprocal insurance exchange, managing general agent, and excess-surplus insurance provider.
Vault offers customisable services and policies to insure high-value homes and cars, as well as collections of art, jewellery, wine, antiques, and memorabilia. The company distributes its products solely through a national network of appointed agents and brokers.
Scott Carmilani, the Co-Founder of Vault and former Chairman and CEO of Allied World Assurance Company Holdings, will continue to serve as Chairman of Vault’s Board.
The Vault leadership team, led by Co-Founder and CEO Charles Williamson, will continue to operate the business and build on the Company’s success to date.
Prem Watsa, Chairman and CEO of Fairfax noted: “We are very pleased to complete this transaction with Cornell Capital and HSCM Bermuda. We are also very grateful to Scott for all of his contributions to the Fairfax Insurance Group, especially at Allied World, a company which he led from being a start-up to becoming an industry leading and highly successful worldwide insurance and reinsurance business. We wish Scott all the very best.”
Carmilani said: “The market demand for premium personal insurance is growing rapidly. There are more than 12 million U.S. households in our target market, up from 6.8 million in 2009, and nearly 80% of them do not currently utilise the services of a high-net-worth insurance specialist, presenting Vault with a large addressable market. With the investment by Cornell Capital and HSCM, we see significant growth potential for Vault in the underserved high-net-worth insurance market.”
Williamson said: “I’m extremely confident in Vault’s future and the balance-sheet flexibility this transaction provides. By leveraging Cornell Capital and HSCM’s deep industry expertise, operational capabilities, and capital resources, Vault is poised to unlock additional growth opportunities.”
Henry Cornell, Founder and Senior Partner of Cornell Capital added: “In less than three years, Vault has progressed from a dynamic startup to a fast-growing disruptor. Our team brings significant experience partnering with and growing leading insurance companies, and we look forward to working closely with Scott, Charles, and the Vault team to execute on our shared vision for continued growth.
“Moving forward, Vault has the potential to become an even stronger, more nimble competitor, capable of reshaping the sector, attracting and retaining top talent, and achieving market leadership in high-net-worth personal insurance.”
Michael Millette, Founder and Managing Partner of Hudson Structured Capital Management said: “We were a founding investor in Vault, and our additional investment is a testament to our confidence in the Company’s business model. We are eager to build on the impressive growth and momentum that we have achieved together over the past three years.”
