K2 Insurance Services Announces Sale to Lee Equity – Undisclosed

Transaction Overview

K2 Insurance Services (“K2”) announced the sale of its MGA operations to Lee Equity (“Lee”)

  • K2 will be acquired from Endeavour Capital, Pat Kilkenny and Management shareholders
  • Transaction does not include affiliated insurance carrier Aegis Security Insurance Company (“ASIC”)
    • ASIC will be carved out of K2 transaction and remain with selling shareholders

Formed in 2011, K2 has quickly become one of the largest independent MGAs in the P&C industry

  • Founded and led by industry experts Pat Kilkenny and Bob Kimmel with the backing of Endeavour
  • Headquartered in San Diego, California and employs over 300 people across the country

K2 is a specialty MGA platform offering differentiated U/W expertise in niche lines of business

  • Managing over $650mm of premium with a distribution network of over 12,000 distribution sources
  • Comprised of 14 operating agencies each with distinguishable product prowess in:
    • Specialty personal lines, workers’ comp, public entity, comm’l transportation, surety, earthquake and A&H
  • Supported by a world class panel of global insurance and alternative capital partners

Lee is a PE firm that partners with management teams of companies with strong growth potential

  • Extensive investment experience in financial services, business services and healthcare services
  • Current investments in the insurance services sector include Captive Resources and McLarens

TigerRisk Capital Markets & Advisory Role

TCMA acted as exclusive financial advisor to K2; key roles and responsibilities include:

  • Optimizing the transaction structure to maximize shareholder value; including ASIC bifurcation
  • Preparation of detailed financial and valuation analysis
  • Leading a targeted auction sale process and introducing the counterparties
  • Creation of marketing materials and financial packages shared with potential buyers
  • Offering insight around key transaction terms and conditions
  • Assistance in the negotiation of final transaction terms and conditions
  • Providing objective advice and acting as a confidant to the seller throughout the process