Investment management company TowerBrook Capital Partners has acquired Orchid Underwriters Agency from private equity firm Gryphon Investors for an undisclosed amount.
Formed in 1998, Orchid Underwriters Agency is a Florida-based managing general agency (MGA)/managing general underwriter (MGU) providing specialty P&C insurance products to homeowners, high net worth individuals and small businesses throughout the US and the Caribbean.
Orchid offers insurance solutions for ‘hard-to-place’ risks to a national network of retail agents and other strategic distribution partners. The company has partnered with several insurance and reinsurance carriers that offer consistent and exclusive risk capacity to Orchid.
Orchid president and CEO Brad Emmons will continue to head the company and will work alongside TowerBrook for the company’s growth. Going forward, Gryphon will maintain significant equity in Orchid.
Brad Emmons said: “We are thrilled to partner with TowerBrook and look forward to benefiting from its deep operational experience and strong network in the insurance industry. We have made significant strategic advancements under Gryphon’s ownership, and we now expect TowerBrook’s investment and guidance to further support future development as we continue to grow the platform organically through geographic and product expansion and pursue potential acquisitions.
“We look forward to the opportunities ahead as we work together to deliver greater value for our partner agents, carriers, and talented employees.”
TowerBrook stated that the investment in Orchid is the result of targeted approach to insurance services market to identify resilient business models with consistent growth. The acquisition aligns with the investment strategy of TowerBrook, to support firms with strong management teams operating in growth markets.
The investment company will work with Orchid’s management team in developing organic and inorganic initiatives to further growth of the insurance company’s platform.
Besides Orchid, TowerBrook has in the past invested in insurance and financial services industry in companies such as Ironshore, Rewards Network, CapQuest, Hayfin, Fortiva, Validity Finance, and Ladder Capital.
Gryphon partner and business services group head Alex Earls said: “Gryphon is delighted to announce the sale of Orchid to TowerBrook, which we believe will be a terrific partner for the Company. We are also pleased to maintain a significant minority equity stake in Orchid.
“The Orchid investment exemplifies Gryphon’s strategy of partnering with talented management teams and industry executives to build market leaders, and we have enjoyed working closely with Orchid’s talented management team.”