Optio, an independent international professional managing general agent (MGA), has announced that international private equity firm Cinven and global investment group La Caisse (formerly CDPQ) have agreed to jointly acquire a majority stake in Preservation Capital Partners (PCP).
This investment will support Optio’s next chapter by supporting the expansion of Optio’s specialty underwriting capabilities, broadening of its product offerings and growth of its international business.
MGA’s current management team will continue to make significant investments and will continue to lead the business following completion of the transaction.
Since PCP’s first investment in 2018, Optio has a diversified platform with over £460m of annual premium written across 18 offices in 15 countries.
The company operates across Europe, the United States, the Middle East and Asia, programming more than 30 products, with primary production capacity from Hiscox as well as several other Class A capacity providers.
Deepak Soni, CEO of Optio Group, said: “We are delighted to welcome Cinven and La Caisse as our partners and start a new chapter in the Optio story. Over the past few years, with the support of PCP, we have successfully built a diversified global platform through investment in the team and the acquisition of high-quality professional MGA.
“Throughout this period, we have remained committed to delivering strong underwriting results for our insurance partners and outstanding service to our brokers. We believe that, together with our new shareholder group, we will continue to build on this foundation, pursue our growth strategy and expand our capabilities, while retaining the entrepreneurial culture and expertise that defines our business.”
Cinven and La Caisse both have extensive experience in the specialty underwriting sub-sector.
The Cinven team has known the company’s management team for more than two years and, together with La Caisse, has developed a strong relationship with the management.
Luigi Sbrozzi, Partner and Co-Head of Strategic Funds at Cinven, said: “Optio represents a huge opportunity in the MGA space, a sub-sector of financial services where Cinven has deep expertise and a proven track record.
“Deepak and the broader management team have built a leading and differentiated home for specialist underwriting talent and we are delighted to be working with them as they continue to grow the business both organically and through further acquisitions. We are also pleased to be working with La Caisse on this transaction and look forward to working together to support Optio’s next phase of growth.”
Martin Longchamps, executive vice president and head of private equity and private credit at La Caisse, added: “Specialty insurance is a market where underwriting technical expertise, rigorous risk selection and scale are increasingly important.
“Optio is well-positioned in this environment, with a differentiated platform serving complex insurance markets, a strong European base and clear international growth potential. Our investment reflects La Caisse’s belief in the long-term fundamentals of the industry, our experience across the entire insurance value chain, and our focus on supporting high-quality businesses with experienced and like-minded partners.”
The transaction is subject to customary regulatory approvals and other closing conditions. Specific financial details of the transaction were not disclosed.
PCP and Optio were advised by Evercore (financial advisers), Skadden (legal advisers), Oliver Wyman (commercial), PwC (finance, tax, operations and IT, underwriting) and Chris Patrick Consulting (debt).
