White Bear Capital today announces the investment of £80m into the group by Alchemy Partners’ Alchemy Special Opportunities Fund IV. Alchemy will take a substantial stake in the group alongside the staff and existing strategic investor Nephila.
It is envisaged that the new investment will allow the group to bring onto its balance sheet exposure to Blenheim Syndicate 5886 and provide working capital to assist in developing the group’s MGA business, White Bear Managers.
Alchemy previously and successfully teamed up with many of the White Bear team at leading Lloyd’s managing agency Cathedral.
Peter Scales, chairman of White Bear Capital, said: “We are delighted to team up with Alchemy, who know our trading model really well as a cornerstone investor. Our intention is to remain firmly in the third party capital business. We see this transaction as aligning our interests more closely with our ongoing and prospective new capital and capacity providers, who, we hope, will continue to grow with us as we move into an ever more positive trading environment.”
Dominic Slade, managing partner of Alchemy, added: “We are delighted to be partnering again with Peter and his team. Not only do industry commercial conditions feel right on the underwriting side but people and capital are on the move. White Bear is a flexible business model which aims to match the best underwriting talent with the best capital. It seems to us that the White Bear team are in the right place at the right time to be positioned for profitable returns on a high quality business.”
The transaction is subject to approval of both Lloyd’s and the FCA.