Dowling Capital Partners’ joint venture to acquire Risk Transfer

Dowling Capital Partners’ and insurance provider The Capacity Group’s joint venture, Insurance Distribution Investing Group, has agreed to acquire a stake in Risk Transfer, an insurance program manager specializing in difficult-to-place risks. The deal also includes IDIG’s patent-pending technology company RiskMD LLC and RiskAware LLC, the company’s loss control and claim advocacy unit.

Press Release

Insurance Distribution Investing Group, LLC (IDIG), a newly-formed joint venture backed by the insurance industry executives of The Capacity Group and funds managed by Dowling Capital Partners announced today that it is acquiring an ownership stake in Risk Transfer and affiliated companies of Risk Transfer. Risk Transfer, an innovative insurance program manager specializing in difficult-to-place risks, and its patent-pending technology company, RiskMD LLC as well as RiskAware LLC, its loss control and claim advocacy division are all included in the transaction.

IDIG was founded to bring together industry experts and professionals in all insurance disciplines, including brokerage and agency operations, reinsurance, insurance-related investment banking, and industry research. IDIG invests in entrepreneurial general and specialty distribution partners such as Risk Transfer, supporting owners and managers with a focus on enhancing innovation and relationships. IDIG plans to leverage its collection of talents to optimize efficiency and service, while allowing Risk Transfer to focus on the revenue and margin drivers of its business.

According to IDIG Managing Partner Gary S. Maier, “Our strategy is well embraced by agency principals who want to position their firms for the next level of profitable growth. We collaborate with them to determine how the combination of our core skill-sets can be best deployed, improving market and product positioning, and offering ways to further differentiate on expertise and customer innovation.”

Paul Hughes, CEO of Risk Transfer, commented, “It is a dream come true to have someone enable Risk Transfer to perfect our operational prowess and at the same time have some of the greatest minds in insurance partner with us to better understand what will happen tomorrow, today. We have industry-leading technology focused on the acquisition, valuation and ongoing management of an insurance transaction. To be able to combine innovation with product from best-in-class insurance companies elevates this industry segment and brings tremendous, new opportunities to professional employer organizations.”

This partnership will allow more time towards the creation of new solutions for Risk Transfer’s clients. Carl Gerson, COO of The Capacity Group, said, “We’re in a unique position to expand on our already growing relationship with Dowling Capital. I’m thrilled Paul Hughes and his talented team are joining us and we’re excited about the combination of Risk Transfer’s innovation with the exceptional trading partners Capacity can bring to this market segment. There will be more exciting news that we plan to share in the coming months too.”

About Risk Transfer
Started in May of 2000 as a retail brokerage, Risk Transfer has always focused on risks that required a more sophisticated understanding of the client’s business, and broader insurance solutions and cost containment structures. Risk Transfer Programs (fka Lighthouse Programs) was formed in 2003 to be the underwriting company for the group. Risk Transfer’s brokerage/consultancy still remain as the flagship operating companies of the group. Risk Aware (outsourced underwriting platforms/cost containment programs) provides comprehensive risk management analytics. Risk Aware was formed in 2007 to focus on customer advocacy and cost containment for our clients and, lastly, RiskMD was formed in 2008 to provide the “art and science” of risk management. The scientific or process portion of RiskMD currently is being reviewed by the US Patent Office and has received a final utilization application.

About Capacity Group
The Capacity Group of Companies offers an expansive range of standard and customized insurance and financial products, while providing superior customer service for all types of businesses, industries, and individuals. The Capacity Group has a diversified insurance distribution and product platform in Retail, Wholesale and Specialty Program business, as well as all types of personal, commercial, specialty and benefits lines of business. The Capacity Group is located in Mahwah, NJ and has 14 offices nationwide. The Capacity Group has grown to become one of the 100 largest insurance brokerage firms in the U.S. It is currently ranked number 43 by Business Insurance magazine, and is among the Top 25 privately held brokerage firms in the U.S. by Insurance Journal magazine.

About Dowling Capital Partners
Dowling Capital Partners (DCP) is a private equity firm that invests exclusively in the insurance industry. Investments are focused on the three main sectors of the industry – underwriting, distribution and technology/services. DCP was formed in 2011 by insurance industry veterans with senior level industry experience, including insurance-related private equity investment management, investment banking, industry research and operational and board-level roles within major insurance, reinsurance and brokerage companies. DCP’s investors include highly regarded insurance industry organizations and professionals. DCP provides its portfolio companies and co-investors with industry expertise, broad relationships and operating experience. For additional information, please visit www.dowlingcapitalpartners.com.

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