Alacrity Solutions Announces Strategic Investment from BlackRock Alternatives’ Long Term Private Capital
Alacrity Solutions Group, LLC (“Alacrity Solutions” or the “Company”), a recognized leader in insurance claims administration in North America, today announced that as part of its Long Term Private Capital (“LTPC”) strategy, BlackRock Alternatives this done has acquired a controlling interest in the company. The former majority investor of Alacrity, Kohlberg & Company (“Kohlberg”) and the management team will retain a significant minority interest in the company.
Alacrity Solutions is a market-leading, technology-enabled, diversified provider of outsourced solutions to US insurance carriers, providing essential services across the claims lifecycle, including field and desk settlement, temporary housing, specialty and auto solutions, managed repair services and desktop verification. The company has a national presence in all 50 states and processes more than 2.8 million claims annually on behalf of more than 300 carrier customers.
Led by a world-class management team with a track record of innovation and execution, Alacrity Solutions has delivered strong, sustained organic growth and completed 16 strategic acquisitions to create a differentiated solutions platform. Because of its high-quality adjuster network, excellence in execution and unwavering commitment to client success, the firm has earned a reputation for providing accurate, professional and scalable services that meet clients’ critical needs throughout the claims and resolution process.
“We are very excited to partner with BlackRock LTPC and to continue our partnership with Kohlberg for our next growth chapter,” he said Jim Pearl, CEO of Alacrity Solutions. “BlackRock LTPC has an excellent reputation as a collaborative partner to the management teams of its portfolio companies and I look forward to working with them to expand the capabilities we offer our valued clients. With our shared vision and direction, BlackRock LTPC is the ideal partner to expand Alacrity’s position as the preeminent platform for outsourced insurance claims solutions in North America. Likewise, Kohlberg has been an excellent partner for Alacrity over the past four years, helping us execute a number of strategic initiatives, including expanding our services across North America and continued technological innovation, and I appreciate Kohlberg’s continued support.”
André Bourbonnais, Global Head of BlackRock Long Term Private Capital, commented, “With long-standing client relationships and an impressive track record of growth, Alacrity Solutions has established itself as a differentiated leader in the fast-growing claims outsourcing space. As long-term investors in the financial and business services sectors, we believe the company has significant growth potential and look forward to working alongside Kohlberg with Jim and the management team at Alacrity Solutions to maintain the company’s strong momentum.”
“Kohlberg is proud to have supported Alacrity’s transformation and growth over the past four years while solidifying their position as a leading provider of outsourced claims for personal insurance,” he commented Christopher Anderson, Partners, Kohlberg & Company. “In addition to completing three strategic acquisitions, we have partnered with Jim to invest heavily in their sales, service and technology organizations, which has further differentiated the company from its peers and helped significantly accelerate its organic growth profile. BlackRock’s LTPC team brings extensive relevant experience and alignment with Alacrity management’s vision, mission and strategy, and our company is pleased to partner with them and looks forward to continuing Alacrity’s continued growth and future success to support.”
Alacrity Solutions is BlackRock LTPC’s seventh investment to date and fifth investment in North America. BlackRock LTPC is an innovative private equity strategy focused on investing in quality companies and creating value through active collaboration with management teams. The strategy’s flexible duration and prudent approach to leverage preserves optionality for growth and helps provide compound capital appreciation. BlackRock LTPC’s team of 23 is based in New York and London and invests across North America and Western Europe.
BofA Securities acted as financial advisor and Simpson Thacher & Bartlett LLP acted as legal advisor to BlackRock LTPC. Evercore and Waller Helms Advisors acted as financial advisors and Ropes & Gray acted as legal advisors to Alacrity Solutions and Kohlberg.
The terms of the transaction were not disclosed.
About Alacrity Solutions
Based in Fishers, Indiana, Alacrity Solutions is one of the largest independent providers of insurance claims management services in North America. Alacrity provides national and regional insurance companies, MGAs, TPAs, self-insured businesses and federal/state customers property, auto and accident adjustment services, staffing solutions, as well as temporary housing services and a nationwide managed repair network to the government sector. For more information, visit: www.alacritysolutions.com.
About BlackRock alternatives
BlackRock Alternatives serves investors seeking outperformance in infrastructure, private equity, credit, real estate, hedge funds and multi-alternatives. We strive to provide our investors with the highest quality investments, leveraging our global footprint, superior execution capabilities and position as a preferred partner. BlackRock manages $318 billion in alternative investments and engagements on behalf of clients worldwide as of December 31, 2022.
About Kohlberg & Company
Led by Sam Frieder and Gordon Woodward, Kohlberg is a leading private equity firm based in Mount Kisco, New York. During its 35-year history, the firm has organized 11 private equity vehicles through which it has raised over $13 billion in committed equity and has generated over $10 billion in realized returns with no realized losses since 2007. Kohlberg employs a rigorous white paper research program, resulting in higher levels of proprietary trading and meaningful value creation for its portfolio companies.
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