Palladium Equity Partners has made an investment in Pronto General Agency and its affiliates (Pronto Insurance), a provider of auto and home insurance. Palladium has a majority ownership interest in Pronto Insurance while the company’s management team, comprised of members of the Varela family and other executives, has retained a significant minority ownership interest.
Pronto Insurance is a managing general agency providing sales & distribution, underwriting, and claims administration services focused primarily on the non-standard auto insurance market in Texas. The company, founded in 1997 and headquartered in Brownsville, TX, has approximately 100 locations statewide in Corpus Christi, the Rio Grande Valley, Laredo, San Antonio, El Paso, Houston and Austin (www.prontoinsurance.com).
Pronto Insurance has experienced significant growth since launching its managing general agency in 2005, expanding its business model from retail insurance distribution to multiple channels of distribution, including captive locations, franchisees, and independent agents.
“Pronto Insurance has established a terrific position in the non-standard auto insurance space, with a strong brand focused on the Hispanic market, multiple channels of distribution, and an attractive Southwest footprint,” said Erik Scott, a Managing Director of Palladium. “We look forward to working with the Pronto Insurance leadership team to continue to grow the company organically by delivering a compelling mix of innovative services to its clients, as well as by pursuing acquisitions that make strategic sense both within and outside of Texas.”
Palladium invests from $50 million to $150 million of equity in companies operating in the financial services, business services, food, healthcare, industrial and media sectors. Palladium has a focus on companies that operate in the rapidly growing US Hispanic market – a market segment where the firm has expertise, a broad network and an extensive track record of investing. Since its founding in 1997, the firm has invested over $1 billion of capital in more than 20 platform investments and over 50 add-on acquisitions. In April 2014, Palladium held a final closing of Palladium Equity Partners IV, LP with $1.1 billion of capital commitments, significantly exceeding the fund’s target. Palladium is based in New York (www.palladiumequity.com).
Pronto Insurance was advised by Sica | Fletcher (www.sicafletcher.com), a financial advisory firm focused exclusively on the insurance industry. The firm was founded by Michael Fletcher and Al Sica, two of the insurance industry’s leading dealmakers who have advised on over $1 billion in insurance agency and brokerage transactions.
“We are excited that Pronto Insurance has joined the Palladium family of companies, and we look forward to partnering with a firm that has significant experience in growing Hispanic-focused businesses,” said Rafael Varela, founding partner of Pronto Insurance. “We share a vision for Pronto Insurance’s great potential and we intend to pursue a course of strategic growth and focused investment in the months and years ahead.”
2014 PEPD • Private Equity’s Leading News Magazine • 10-1-14
