M&A Deal Summary

GCP Capital Partners, New Mountain Capital, Vestar Capital Partners, Ridgemont Equity Partners, Aquiline Capital Partners and Goldman Sachs Merchant Banking Acquire Validus Re

On December 14, 2005, merchant bank GCP Capital Partners, private equity firm New Mountain Capital, private equity firm Vestar Capital Partners, private equity firm Ridgemont Equity Partners, private equity firm Aquiline Capital Partners and private equity firm Goldman Sachs Merchant Banking acquired insurance company Validus Re

Acquisition Highlights
  • This is GCP Capital Partners’ 2nd, New Mountain Capital’s 1st, Vestar Capital Partners’ 4th, Ridgemont Equity Partners’ 5th, Aquiline Capital Partners’ 1st and Goldman Sachs Merchant Banking’s 2nd transaction in the Insurance sector.
  • This is GCP Capital Partners’ 1st, New Mountain Capital’s 1st, Vestar Capital Partners’ 2nd, Ridgemont Equity Partners’ 1st, Aquiline Capital Partners’ 1st and Goldman Sachs Merchant Banking’s 1st transaction in Bermuda.
Investment Fate
  • Validus Re went public in 2007.
  • Validus Re was sold to a strategic buyer in 2018 for 5.6B USD.
  • Validus Re was divested to a consortium of strategic buyers in 2023 for 3.0B USD.

M&A Deal Summary

Date 2005-12-14
Target Validus Re
Sector Insurance
Buyer(s) GCP Capital Partners
New Mountain Capital
Vestar Capital Partners
Ridgemont Equity Partners
Aquiline Capital Partners
Goldman Sachs Merchant Banking
Deal Type Buyout (LBO, MBO, MBI)

Target

Validus Re

Pembroke, Bermuda
Validus Re is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd. and Talbot Holdings Ltd. The company is a Bermuda-based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd's insurance market through Syndicate 1183. Validus Re was founded in 2005 and is based in Pembroke.

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Buyer(S) 6

Buyer

GCP Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Merchant Bank
Founded 2000
PE ASSETS 1.2B USD
Size Large
Type Sector Agnostic
DESCRIPTION

GCP Capital Partners consists of GCP US, GCP Europe, and GCP Venture. GCP US targets North American acquisitions. The unit looks to invest $10 to $50 million in businesses valued up to $500 million. GCP Europe targets businesses in the UK and Europe. The European team looks to invest up to £40 million in companies valued up to £100 million. Sectors of interest include business services, education, energy, financial services, insurance and telecommunications.


DEAL STATS #
Overall 14 of 45
Sector: Insurance M&A 2 of 6
Type: Buyout (LBO, MBO, MBI) M&A Deals 8 of 22
Country: Bermuda M&A 1 of 1
Year: 2005 M&A 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-01 Healthcare Finance Group

New York City, New York, United States

Healthcare Finance Group is a specialty finance company that provides revolving credit facilities and term loans to healthcare providers. HFG targets middle-market healthcare service providers, generally requiring credit facilities of $5.0 million to $50.0 million.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-02 Triana Energy

Charleston, West Virginia, United States

Triana Energy, LLC is an oil and gas exploration and production company. The Company was focused primarily in the Appalachian Basin.

Sell -
Buyer

New Mountain Capital

New York, New York, United States

Category Private Equity Firm
Founded 1999
PE ASSETS 55.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

New Mountain Capital is a private investment firm focused on investment in public and private companies in a variety of industries. New Mountain generally invests $100 to $500 million per transaction and looks for businesses with strong market positions and high barriers to entry. New Mountain also prefers businesses that succeed in both good and bad economies. Sectors of interest include education, healthcare, business services, federal IT services, media, software, consumer products, logistics, financial services and technologies, and energy. New Mountain Capital was formed in 1999 and is based in New York, New York.


DEAL STATS #
Overall 8 of 104
Sector: Insurance M&A 1 of 7
Type: Buyout (LBO, MBO, MBI) M&A Deals 5 of 17
Country: Bermuda M&A 1 of 2
Year: 2005 M&A 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-04-19 Deltek

Herndon, Virginia, United States

Deltek, Inc. is a provider of enterprise applications software designed specifically for project-focused businesses. The Company's software applications enables organizations to automate mission-critical business processes around the engagement, execution and delivery of projects. Deltek is based in Herndon, Virginia.

Buy $200M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-30 Surgis

Nashville, Tennessee, United States

Surgis, Inc. is a provider of scopes, instrumentations, supplies, and personnel to maintain and support the endoscopic services of general hospitals.

Sell -
Buyer

Vestar Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 11.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Vestar Capital Partners is a private equity firm that targets management buyouts and growth capital investments across North America and Europe in the consumer, business services, and healthcare sectors. The Firm looks to invest $50 to $150 million in transactions valued up to $1 billion. Specific areas of interest include food, apparel, household goods, retail, consumer services, industrial services, information services, manufacturing, distribution, transportation, financial services, media/communications, digital health media, and medical technology. Vestar Capital Partners was formed in 1988 and is based in New York City.


DEAL STATS #
Overall 51 of 86
Sector: Insurance M&A 4 of 7
Type: Buyout (LBO, MBO, MBI) M&A Deals 33 of 41
Country: Bermuda M&A 2 of 4
Year: 2005 M&A 5 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-06 Nybron Flooring International AG

Jona, Switzerland

Nybron Flooring International AG is a producer of wood flooring and the world market leader in pre-finished engineered wood flooring products.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-22 Civitas Solutions

Boston, United States

Civitas Solutions is a provider of home- and community-based health and human services to must-serve individuals with intellectual, developmental, physical or behavioral disabilities and other special needs. Since our founding in 1980, we have evolved from a single residential program to a diversified national network offering an array of quality services in 36 states. Civitas Solutions was founded in 1980 and is based in Boston, Massachusetts.

Buy -
Buyer

Ridgemont Equity Partners

Charlotte, North Carolina, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1993
PE ASSETS 7.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Ridgemont Equity Partners is an independent private equity firm specializing in middle-market buy-outs, corporate divestitures, recapitalizations and growth capital investments. The Firm targets to invest in companies located in North America, preferably in US and Canada. REP looks to invest up to $500 million in companies with EBIDTA of $5 - $50 million. The Firm seeks to hold both majority and minority equity interest in portfolio companies. Specific areas of interest include basin industries and services, energy, healthcare, telecommunications, media and technology. Ridgemont Equity Partners is a spun-off of Banc of America Capital Investors (BACI). Ridgemont Equity Partners was formed in August 2010 and is based in Charlotte, North Carolina.


DEAL STATS #
Overall 54 of 136
Sector: Insurance M&A 5 of 9
Type: Buyout (LBO, MBO, MBI) M&A Deals 29 of 58
Country: Bermuda M&A 1 of 3
Year: 2005 M&A 7 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-01 Spirit Pub Co.

Staffordshire, United Kingdom

Spirit Pub Company plc is the largest managed pub operator in the U.K., with over 2,400 pubs serving alcohol and food in both suburban and urban locations. MLGPE provided equity to support the acquisition of Spirit by Texas Pacific Group, The Blackstone Group, and CVC Capital Partners.

Sell £2.7B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 TransDigm Group

Cleveland, Ohio, United States

TransDigm Group is a designer, producer and supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft platforms. TransDigm's major product lines include pumps, ignition system components, mechanical controls and actuators, engineered connectors, NiCad batteries and chargers, lavatory components and overhead bin latches. TransDigm Group was founded in 1983 and is based in Cleveland, Ohio.

Sell -
Buyer

Aquiline Capital Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 10.4B USD
Size Mega
Type Sector Focused
DESCRIPTION

Aquiline Capital Partners is a private equity firm that targets investments in the financial services sector. The Firm specifically invests in risk-bearing and services enterprises in industries such as property and casualty insurance, specialty finance, securities, asset management, life insurance and transaction processing. Aquiline Capital was formed in 2005 and is based in New York City.


DEAL STATS #
Overall 1 of 72
Sector: Insurance M&A 1 of 13
Type: Buyout (LBO, MBO, MBI) M&A Deals 1 of 12
Country: Bermuda M&A 1 of 3
Year: 2005 M&A 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-07-31 Validus Re

Pembroke, Bermuda

Validus Re is a provider of reinsurance and insurance, conducting its operations worldwide through two wholly-owned subsidiaries, Validus Reinsurance, Ltd. and Talbot Holdings Ltd. The company is a Bermuda-based reinsurer focused on short-tail lines of reinsurance. Talbot is the Bermuda parent of the specialty insurance group primarily operating within the Lloyd's insurance market through Syndicate 1183. Validus Re was founded in 2005 and is based in Pembroke.

Sell -
Buyer

Goldman Sachs Merchant Banking

New York, New York, United States

Investor


Category Private Equity Firm
Founded 1986
PE ASSETS 155.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Goldman Sachs Merchant Banking Division is the investment arm of Goldman Sachs. The primary corporate investment group within the Merchant Banking Division is Goldman Sachs' direct investment arm. GS's direct investment arm consists of GS Capital Partners, GS Mezzanine Partners, and GS Growth Partners. GS Capital Partners is the direct corporate equity investment group which seeks LBO, recapitalization, and growth investments to help fund acquisitions, expansions, recapitalizations, restructurings, buyouts, and take privates. GS Capital Partners looks to invest between $50 and $800 million in opportunities in North/South America, Europe, Asia. GS Mezzanine Partners is the junior capital arm of Goldman Sachs. GS Mezzanine looks to invest between $200 million and and $800 million in transactions valued up to $10 billion. Investment proceeds are used to fund leveraged buyouts, expansion financings, recapitalizations, acquisitions, and restructurings. GS Growth looks to invest in growth equity transactions. The unit seeks to commit $20 to $200 million per investment. Other units within GS's merchant banking division include Real Estate, Infrastructure, and Urban Investments. Goldman Sachs Merchant Banking Division is based in New York City.


DEAL STATS #
Overall 26 of 189
Sector: Insurance M&A 2 of 6
Type: Buyout (LBO, MBO, MBI) M&A Deals 10 of 33
Country: Bermuda M&A 1 of 1
Year: 2005 M&A 10 of 10
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-30 Cobalt International Energy

Houston, Texas, United States

Cobalt International Energy, Inc. is an oil and gas exploration and development company focused on pursuing niche opportunities in the Deepwater Gulf of Mexico and offshore international areas. Cobalt's strategy is to utilize its regional expertise along with advanced technology to identify and develop meaningful reserve targets in select offshore ventures. Cobalt International Energy is based in Houston, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-06 Education Management

Pittsburgh, Pennsylvania, United States

Education Management Corp. is a provider of private post-secondary education. EDMC has provided career-oriented education for over 40 years has generated consistent revenue and profit growth for many years and is among the largest providers of private post-secondary education in North America based on student enrollment and revenue.

Buy $3.4B