SageSure said it will use the fresh funds to refinance its existing bank facility and to support strategic growth initiatives.
In a statement, CEO Terry McLean said: “While maintaining our strong, 13-year partnership with minority investor IAT, we are excited to add Ares, a global leader in alternative investment management, as a strategic capital provider.”
“We believe that Ares is well positioned to support SageSure’s growth given its leadership position and deep understanding of the insurance market,” he added.
Ares Credit Group partner Scott Rosen said: “We have been following the SageSure story for some time and are excited to support their future growth through this financing solution.”
“We greatly look forward to a long and fruitful relationship with the company,” the executive added.
TigerRisk Capital Markets & Advisory acted as exclusive placement agent to SageSure on the transaction. Shipman & Goodwin acted as legal adviser to SageSure, and Proskauer Rose served as legal adviser to Ares.
The New Jersey-based MGU specializes in in coastal residential property markets and works with multiple carrier partners, including IAT Insurance Group, FedNat Insurance Company, Independent Mutual Fire and SafePort Insurance Company. It also recently launched SureChoice Underwriters Reciprocal Exchange (Sure).
SageSure currently offers more than 50 insurance products in 14 coastal states on behalf of its carrier partners and serves more than 400,000 policyholders.
In May last year the MGU struck a capacity deal with Sure to place cover in the Texas homeowners’ market using a proprietary rating methodology that the company says allows better assessment of individual property risks.
