Carbon Underwriting Limited, an authorized underwriting specialist with its own Lloyd’s syndicate, has signed a major growth equity investment agreement with FTV Capital, a global industry-focused growth equity firm.
The deal was led by Mike Vostrizansky, Richard Earnshaw and Max Weber from FTV.
Carbon said the investment will accelerate the growth of its mandated underwriting platform, fund the continued development of its proprietary graphene data and analytics technology, deepen its artificial intelligence capabilities and support its international expansion, including expanding its U.S. operations.
Authorized underwriting experts noted that it will continue to operate independently under its existing management team.
Carbon reportedly retains the culture, strategic focus and underwriting discipline that have underpinned its success to date, and these foundations are expected to continue to guide the business as it enters its next chapter.
Howden Capital Markets & Advisory serves as Carbon’s exclusive financial advisor, while Houlihan Lokey and Acrisure Re Corporate Advisory & Solutions serve as financial advisors to FTV Capital.
Browne Jacobson and Norton Rose Fulbright provided legal advisory support to Carbon, while Skadden acted as buyer’s counsel. Jamison Corporate Finance advised management on the transaction.
Jacqui Ferrier, CEO of Carbon, commented: “At Carbon, we have been on a mission to revolutionize the mandated underwriting space and establish a global benchmark since 2018. We remain committed to this mission and are committed to building an independent, market-leading platform to serve clients around the world.
“We are building on the tremendous success we have achieved to date with the support of FTV’s experienced investors who bring credibility and strategic value with a proven track record and meaningful presence in the US and broader MGA markets.
“Ben and I are sincerely grateful to Jeniv, Thomas and the Apiary Capital team (our investors since 2023) for their belief in our business and their support in allowing us to scale quickly and responsibly.
“We are also deeply grateful to our managing agents Asta, Lloyd’s, our partners, underwriters, capital providers, reinsurers, brokers and the entire Carbon team for their support and commitment throughout the journey from SIAB to now. And, of course, special thanks to our co-founder and friend Nick Tye, who has played such an important part in Carbon’s story.”
Carbon managing director Ben Laidlaw added: “We are delighted to see the enthusiasm for Carbon during this rapid development, which underlines the strength of the business and the value perceived by investors, as well as the strong interest in Lloyd’s and the wider London insurance market.
“We have grown tremendously over the past three years, providing exceptional service to new and existing customers, powered by our breakthrough graphene platform, and our new investors are fully committed to our approach. We are very excited about this next step with FTV.”
Mike Vostrizansky, Partner at FTV, noted: “Carbon has conquered one of the most attractive and underserved segments of the insurance market, and its data-led approach to entrusted underwriting resonates strongly with the direction the industry is heading.
“The U.S. presents a large, largely untapped opportunity for this proposition, and FTV can leverage our experience scaling financial technology businesses, our network of U.S. carriers and distribution partners, and FTV Propel to add differentiated value and help Carbon build the team and capabilities it needs to support its next phase of growth.”
Richard Earnshaw, partner at FTV, said: “Carbon has established itself as a scalable, profitable and highly differentiated platform in one of the most attractive segments of the Lloyd’s market.
“Its focus on low-volatility SMB risk, coupled with the real-time visibility and portfolio control provided by Graphene, has created an excellent and consistent underwriting record and strong client retention. We are convinced of Carbon’s data-driven approach and its multiple growth levers, and we are excited to work with Jacqui, Ben and the rest of the Carbon team to capitalize on future opportunities.”
Jeniv Shah, partner at Apiary Capital, added: “We are extremely proud to have been part of the Carbon story since our investment in 2023. Jacqui, Ben and the rest of the team have built a truly special business with a fantastic culture, and they have done a fantastic job of tripling the size of the business and diversifying into new markets over the past three years. We have no doubt that with the addition of FTV, the business will be well-positioned to continue its strong growth.”
