Divestiture • Insurance

SkyKnight Capital, Dragoneer Investment Group and Aquiline Capital Partners Acquire Core Specialty Insurance

On June 10, 2020, private equity firms SkyKnight Capital, Dragoneer Investment Group and Aquiline Capital Partners acquired insurance company Core Specialty Insurance from Enstar Group

Acquisition Context
  • This is SkyKnight Capital’s 3rd, Dragoneer Investment Group’s 2nd and Aquiline Capital Partners’ 10th transaction in the Insurance sector.
  • This is SkyKnight Capital’s 6th, Dragoneer Investment Group’s 4th and Aquiline Capital Partners’ 36th transaction in the United States.
  • This is SkyKnight Capital’s 2nd, Dragoneer Investment Group’s 1st and Aquiline Capital Partners’ 1st transaction in Ohio.
Investment Fate
  • Core Specialty Insurance was sold to a publicly-traded strategic buyer in 2024.

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M&A Deal Summary

Date June 10, 2020
Target Core Specialty Insurance
Sector Insurance
Buyer(s) SkyKnight Capital
Dragoneer Investment Group
Aquiline Capital Partners
Sellers(s) Enstar Group
Deal Type Divestiture

Target Company

Core Specialty Insurance

Cincinnati, Ohio, United States
Core Specialty Insurance offers a diversified range of property and casualty insurance products for small to midsized businesses. Core Specialty Insurance is based in Cincinnati, Ohio.
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Buyers Overview 3

DESCRIPTION

SkyKnight Capital is a private equity firm focused on long-term investments in businesses requiring value-add strategies to achieve growth. SkyKnight will consider majority or minority investment situations and generally looks to commit $25 to $250 million per transaction. Sectors of interest include healthcare, financial services, and tech-enabled services. SkyKnight is headquartered in San Francisco, California.


Deal Context for Buyer #
Overall 6 of 18
Sector: Insurance 3 of 4
Type: Divestiture 1 of 1
State: Ohio 2 of 3
Country: United States 6 of 18
Year: 2020 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-10-21 Aerocare

Orlando, Florida, United States

Aerocare is a provider of oxygen, respiratory, sleep, and other chronic therapy services to patients in the home. AeroCare's patients typically suffer from the chronic obstructive pulmonary disease (COPD), obstructive sleep apnea (OSA), or congestive heart failure (CHF) and require in-home therapy services. Aerocare Holdings, Inc. was founded in 2000 and is based in Orlando, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-07-02 AdaptHealth

Plymouth Meeting, Pennsylvania, United States

AdaptHealth is a provider of home healthcare equipment, medical supplies to the home and related services. AdaptHealth provides a full suite of medical products and solutions designed to help patients manage chronic conditions in the home, adapt to life, and thrive. Product and services offerings include (i) sleep therapy equipment, supplies and related services (including CPAP and bi PAP services) to individuals suffering from obstructive sleep apnea, (ii) home medical equipment (HME) to patients discharged from acute care and other facilities, (iii) oxygen and related chronic therapy services in the home, and (iv) other HME medical devices and supplies on behalf of chronically ill patients with diabetes care, wound care, urological, ostomy and nutritional supply needs. AdaptHealth was founded in 2012 is based in Plymouth Meeting, Pennsylvania.

Buy -
DESCRIPTION

Dragoneer Investment Group is a growth-oriented investor in public and private companies throughout the US. Dragoneer Investment Group was established in 2012 and is headquartered in San Francisco, California.


Deal Context for Buyer #
Overall 6 of 9
Sector: Insurance 2 of 2
Type: Divestiture 1 of 1
State: Ohio 1 of 1
Country: United States 4 of 6
Year: 2020 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-04-25 CampusLogic

Chandler, Arizona, United States

CampusLogic delivers SaaS technology that helps colleges and universities remove barriers in the financial aid process. The company currently helps nearly 800 schools increase enrollment, retention, and graduation rates with the most comprehensive platform of Student Financial Success products. CampusLogic was formed in 2011 and is based in Chandler, Arizona.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-09-24 Clearwater Analytics

Boise, Idaho, United States

Clearwater Analytics provides web-based, investment portfolio reporting and analytics for institutional investors, investment managers, custody banks, and electronic trading portals. Its daily-aggregated and reconciled solutions deliver the highest level of portfolio transparency available on the market today for clients such as Cisco Systems, Oracle Corporation, Starbucks Corporation, and Yahoo!. Clearwater Analytics was founded in 2004 and is based in Boise, Idaho.

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 Context for Buyer #
Overall 49 of 72
Sector: Insurance 10 of 13
Type: Divestiture 4 of 7
State: Ohio 1 of 2
Country: United States 36 of 53
Year: 2020 4 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-05-13 Artivest Holdings

New York, New York, United States

Artivest Holdings, Inc. is a provider of premier alternative investment strategies designed for financial professionals and individuals seeking to improve their portfolio diversification. Artivest follows a disciplined process for identifying, evaluating, selecting, and monitoring investment talent across a spectrum of alternative strategies including managed future, global macro, long/short equity, private equity, event-driven, and others. Artivest Holdings is based in New York.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-07-20 Quintes

Waardenburg, Netherlands

Quintes is an insurance & pension broker and MGA operating nationwide in the Netherlands working with subsidiaries Quintes, Commandeur, Kroezen, Deugd & Terpstra, Timmermans Koch en Brink, Beijer, Plus Diensten and Wiersma & Walvius. Quintes was founded in 2012 and is based in Waardenburg, Netherlands.

Buy -

Seller Profile 1

SELLER

Enstar Group

Hamilton, Bermuda

Category Company
Founded 1993
Sector Insurance
Employees805
Revenue 864M USD (2021)
DESCRIPTION

Enstar Group is a insurance run-off services company that specializes in acquiring and managing reserves associated with discontinued books of property & casualty insurance and reinsurance business on a global basis. Enstar Group was founded in 2001 and is based in Hamilton, Bermuda.


Deal Context for Seller #
Overall 2 of 4
Sector: Insurance 2 of 4
Type: Divestiture 2 of 4
State: Ohio 1 of 1
Country: United States 2 of 3
Year: 2020 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-10-30 BorgWarner Morse TEC

Ithaca, New York, United States

BorgWarner Morse TEC LLC is a manufacturer of automotive parts and accessories. BorgWarner Morse TEC is based in Ithaca, New York.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-02-16 PLICNY

New York, New York, United States

PLICNY is a New York-domiciled insurance company licensed to underwrite business in New York and Delaware.

Sell -