Private investment firm Cornell Capital and asset manager Hudson Structured Capital Management (dba HSCM Bermuda) have entered an agreement to acquire a majority stake in Vault Holdings from Allied World and Fairfax Financial.
Established in October 2017, Vault is a provider of personal insurance products and services designed for high net worth clients. The company operates under a hybrid business model, serving as a reciprocal insurance exchange, managing general agent, and excess-surplus insurance provider all at the same time. Vault offers insurance policies to insure high value homes and cars, as well as coverage for collections of art, jewelry, wine, antiques, and memorabilia. The company also distributes its products through a national network of appointed agents and brokers.
Following the transaction, Vault co-founder and former Allied World Assurance Company Holdings chairman & CEO Scott Carmilani will continue to serve as chairman of Vault’s board. Vault’s leadership team will continue to operate under the guidance of co-founder and CEO Charles Williamson.
"The market demand for premium personal insurance is growing rapidly," said Carmilani.
Carmilani commented that there are more than 12 million US households in Vault’s target market, up from 6.8 million in 2009. He also said that nearly 80% of those households do not currently utilize the services of a high net worth insurance specialist – this presents Vault with a large market, the co-founder noted.
“With the investment by Cornell Capital and HSCM, we see significant growth potential for Vault in the underserved high net worth insurance market,” Carmilani prefaced.
"I'm extremely confident in Vault's future and the balance-sheet flexibility this transaction provides," said Williamson.
"Our team brings significant experience partnering with and growing leading insurance companies, and we look forward to working closely with Scott, Charles, and the Vault team to execute on our shared vision for continued growth,” stated Cornell Capital founder and senior partner Henry Cornell.
"We were a founding investor in Vault, and our additional investment is a testament to our confidence in the Company's business model," added HSCM founder and managing partner Michael Millette.