Investment firm Vida Capital, Inc. has today expressed its support of both the current leadership and strategy of R&Q Insurance Holdings Ltd.
Vida Capital Management currently manages funds owning some 9.07% of the outstanding shares of R&Q.
In a statement, the company, which is a vertically integrated, uncorrelated investment firm specialising in insurance, longevity, structured credit, and private lending, says that it supports Executive Chairman, William Spiegel, the management team and the Board in their efforts to maximise shareholder value.
“We believe a dramatic change to the strategy or to the executive leadership at this time would be counterproductive and would create a major distraction for the company,” says Vida Capital.
“This is especially true after the successful recent capital raise, which allows the company to focus on execution of its strategy without the fundraising and merger distractions of the last year. We look forward to seeing the results that the team can deliver going forward,” it continues.
The statement from Vida Capital comes days after Phoenix Asset Management Partners, which holds a quarter of R&Q’s share capital, called for Spiegel to be removed as a director and replaced by Ken Randall.
At this time, Phoenix said that, “We and other investors have seen the performance of the business deteriorate under the leadership of William Spiegel.”
The next day, on August 16th, 777 Partners backed insurer Brickell PC Insurance Holdings, which had been set to acquire R&Q earlier this year before the deal was rejected by two shareholders as Brickell argued that R&Q had breached certain obligations, expressed concern about the “recent significant deterioration of the business.”
After the letters sent by Phoenix and Brickell to shareholders, it will be pleasing for R&Q’s current management to have the support of Vida Capital.
