Elementum Has Sold a Minority Stake to White Mountains

Transaction Overview

On June 3rd, Elementum announced a sale of a minority equity stake to White Mountains

  • Elementum’s principals will continue to control the operation of the business following this transaction
  • Elementum’s principals will also continue to own a significant majority of the company
  • Other terms of the transaction were not disclosed

White Mountains will also invest $50 million across Elementum’s funds

Formed in 2009, Elementum Advisors is an SEC-registered investment advisor based in Chicago

  • Focus on investments exposed to natural catastrophe event risk
  • The company has grown to over $4 billion in assets under management since inception
  • Elementum manages portfolios across a range of liquidity and risk/return profiles
    • Including catastrophe bonds and collateralized reinsurance investments
  • Elementum is the third largest independent manager of insurance linked securities (“ILS”)

White Mountains (WTM) is a publicly-traded, Bermuda-domiciled holding company founded in 1999

  • ~$3bn market cap with a demonstrated appetite for insurance acquisitions
  • The company conducts most of its business through its insurance subsidiaries and other affiliates
  • WTM focuses on long-term investments in businesses with strong owners and management teams

TigerRisk Capital Markets & Advisory Role

TCMA acted as a financial advisor to Elementum in the transaction

  • Led a targeted sale process and introduced the counterparties
  • Assisted in the development of key marketing materials and presentations
  • Offered key insight around key transaction terms and conditions
  • Provided valuable advice in the negotiation of final transaction terms
  • Provided objective advice and acted as a sounding board to the seller throughout the process