Oaktree Announced Acquisition of Velocity

Transaction Overview

On 12/28/2021, Velocity Risk Underwriters, LLC (“Velocity Risk”) announced its acquisition by funds managed by Oaktree Capital Management, L.P. (“Oaktree”)

Velocity Risk is a U.S. CAT-focused property and specialty insurance risks MGA

  • Founded by Nephila Capital (“Nephila”) in 2015 and headquartered in Nashville, Tennessee
  • Nephila is a leading investment manager specializing in specialty (re)insurance, climate, and weather risk
  • Committed to coastal customers, offering property coverage to CAT exposed homes and businesses
  • Licensed in 50 states as a general agency and underwrites through A.M. Best “A” rated carriers
  • Has been focused on providing best in class products and services in selected markets since inception

Oaktree is a leader among global investment managers specializing in alternative investments

  • $158bn of assets under management as of 9/30/2021
  • Emphasizes an opportunistic, value-oriented and risk-controlled approach to investments
  • Invests across credit, private equity, real assets and listed equities
  • Has over 1,000 employees and offices in 19 cities worldwide(a)

The transaction closed in February 2022

TigerRisk Capital Markets & Advisory Role

TCMA is acting as exclusive financial advisor to Oaktree

  • Assisted with financial modeling and valuation analysis
  • Assisted in due diligence including underwriting portfolio and reinsurance capacity reviews
  • Provided insights into various underwriting portfolio and reinsurance capacity considerations
  • Offered insights around and assisted in the negotiation of transaction terms and conditions
  • Provided objective advice and acted as a confidant to the buyer throughout the process