Private Equity Firm CVC Invests in Dale Underwriting to Boost Growth at Lloyd’s

September 18, 2023

Dale Underwriting Partners, the trading name for Dale Managing Agency’s Lloyd’s Syndicate 1729, has agreed a strategic partnership with CVC, a leading global private markets manager with €161 billion of assets under management.

CVC funds will invest in Dale to provide the capital to replace the current third-party capital providers and support business growth, which will result in CVC funds acquiring a majority stake in the business.

Founded by Duncan Dale in 2014 and operating through Lloyd’s Syndicate 1729, Dale is a specialist provider of insurance and reinsurance lines across six core classes. Dale is a high-quality business which has grown strongly over recent years and today controls more than $500 million of premiums, underpinned by its leadership positions in its areas of focus, highly experienced team, prudent underwriting approach together with its entrepreneurial, agile, and performance-driven culture.

This investment will secure a large pool of long-term stable capital to fund Dale’s growth, capitalizing on the competitive global position of the Lloyd’s market and the Dale team’s expertise and strong position.

CVC funds have extensive prior experience of investing in and growing regulated financial services and insurance companies globally, including in the Lloyd’s market through investments into Brit Insurance and RiverStone International. CVC funds, which will be making this investment from its Strategic Opportunities Fund, will support Duncan Dale and his team’s vision for the long-term strategic development of the business.

“We are excited to be partnering with CVC to back Dale’s next phase of growth. We have an aligned vision on where we would like to take the business and believe they will be a great partner given their long-term investment horizon and approach to supporting us to create value,” commented Duncan Dale, Dale’s founder and chief executive, in a statement.

“The specialty insurance and Lloyd’s markets are attractive markets for patient capital investors like CVC funds and a focus for our financial services strategy,” according to Martin Iacoponi, managing director at CVC.

“We have been impressed by Duncan and his team’s approach in building a high-quality player over the last decade. We are very pleased to partner with the Dale team and look forward to supporting the business with CVC funds’ capital and our experience to help them grow and develop further.”

The transaction is subject to customary regulatory approvals and is expected to close in the fourth quarter of 2023 or Q1 2024.

Dale was advised by Macquarie Capital and Norton Rose Fulbright, and CVC was advised by Howden Tiger Capital Markets & Advisory, Aon Capital Advisory and Aon’s Strategy and Technology Group, EY, Weil, and Bryan Cave Leighton Paisner.

Source: CVC and Dale Underwriting Partners