Funds managed by Oaktree Capital Management, a global investment manager specializing in alternative investments, acquired Velocity Risk Underwriters, a catastrophe-focused property and specialty insurance risk managing general agent (MGA).
Founded in 2015 by Nephila Capital and headquartered in Nashville, TN, Velocity Risk provides insurance coverage to clients in catastrophe-exposed areas of the United States.
“The launch of Velocity Risk was designed to disrupt the value chain between insurance and capital through innovative underwriting and operational efficiency,” Phil Bowie, CEO of Velocity Risk, said. “We are thrilled to have received Oaktree’s support and believe we have the right investor in Oaktree to help us continue building out our business.”
“Velocity Risk has established itself as a leading property-focused MGA through the quality of its management team, its strong underwriting results and its investment in enabling technologies. We are excited to partner with the company and support its track record of driving growth and delivering value for its stakeholders,” Greg Share, managing director for Oaktree’s global opportunities group, said.
“We’re delighted to be partnering with Oaktree and are confident they will help Velocity Risk continue to build on its past successes,” Frank Majors, co-CEO of Nephila Capital, said. “We look forward to continuing to work with Velocity Risk through our ongoing minority shareholding.”
Evercore served as sole financial adviser and Willkie Farr & Gallagher served as legal counsel to Velocity Risk on this transaction. TigerRisk Capital Markets & Advisory served as exclusive financial advisor and Debevoise & Plimpton served as legal counsel to Oaktree on this transaction.