THL Seizes the Day with Buy of Carpe Data

THL Seizes the Day with Buy of Carpe Data

Carpe Data was acquired by THL through its two most recent funds which closed in October 2021 with an aggregate $6.5 billion in committed capital

Carpe Data uses proprietary algorithms and artificial intelligence to provide data and analytics to insurance providers

SOURCE: Getty Images

Thomas H. Lee Partners has agreed to acquire Carpe Data, a provider of data and analytics to the insurance industry.

Carpe Data uses proprietary algorithms and artificial intelligence to provide data to insurance providers to automate claims decisions. According to the company, it provides data on over 45 million businesses to its insurance customers. Located just north of Los Angeles in Santa Barbara, California, Carpe Data was founded in 2016 by CEO Max Drucker and has nearly 150 employees and additional offices in Connecticut and Portugal.

“Since forming Carpe Data in 2016, we have rapidly grown and cultivated a blue-chip customer base, and we believe THL is the ideal partner for the next phase of our journey,” said Mr. Drucker. “The depth of their expertise in the insurance technology and automation sectors, combined with their experience scaling high-growth technology businesses, makes THL well suited to help us execute on our strategic roadmap for continued growth. With this investment, we have a unique opportunity to further expand across core segments, introduce new products and use cases, and enter adjacent markets.”

“As leading investors in the insurance and automation space for over 20 years, we have witnessed the growing demand among carriers for automated alternative data and predictive analytics to improve performance and gain a competitive edge in all key workflows,” said Edward Shahnasarian, a director at THL. “With a strong track record of innovation and growth, Carpe Data is meeting this demand by creating a new market for alternative data to unlock automation and improve outcomes across the insurance lifecycle.”

THL was founded in 1974 and is one of the oldest private equity investment firms in the United States. Industries of interest include financial services, healthcare, and technology & business solutions. Since its founding, Boston-based THL has raised over $30 billion of equity capital, acquired over 160 portfolio companies, and completed over 500 add-on acquisitions.

THL closed its most recent flagship fund, Thomas H. Lee Equity Fund IX LP, in October 2021 with $5.6 billion in committed capital. The firm also closed THL Automation Fund LP with $900 million of committed capital in November 2018. The investment in Carpe Data marks the tenth investment from its automation fund and the eighth investment from its flagship fund.

William Blair was the financial advisor to Carpe Data and Raymond James & Associates was the financial advisor to THL.

© 2022 Private Equity Professional | April 22, 2022

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