San Francisco Bay area-based private equity firm Altamont Capital Partners said Tuesday that it has acquired a majority stake in Celestite. No financial terms were disclosed. Dowling Hales and Akin Gump advised Celestite on the transaction while Ropes & Gray advised Altamont. Headquartered in Dallas, Celestite is an insurance agency focused on the non-standard auto sector.
Dallas, TX and Palo Alto, CA, March 4, 2014 — Altamont Capital Partners (Altamont) today announced a majority equity investment into Celestite, a leading insurance managing general agency focused on the non-standard auto market. Led by founder Richard Asprey, who will remain CEO and a major shareholder in the company, Celestite has grown consistently through its multiple insurance programs since its founding in 2007.
Richard, commenting on the deal, said: “Our focus has always been on building a scalable business through the right people, systems and partners. We’ve been fortunate to work with some of the strongest names in the insurance and reinsurance markets, who have supported the company from its founding to today. As we look to the company’s future growth opportunities, Altamont’s deep experience and extensive network in the insurance industry make them a uniquely strong partner for us.”
Keoni Schwartz, Managing Director at Altamont said: “Celestite’s demonstrated ability to profitably grow its business, and that of its insurance partners, is highly differentiated. Celestite also has particularly strong relationships with its retail agents driven by the company’s focus on solid underwriting and great customer service. We are excited to partner with Richard and his team to build on the company’s successful history and to support them in capturing the numerous organic and inorganic growth opportunities ahead.”
Jon Altman, Principal at Altamont added: “One of Celestite’s greatest strengths is its senior leadership. Richard, along with the company’s CFO, Bob Newton, and COO, Lauren Moore, have built a fantastic platform. We look forward to supporting them as they continue building the business. We are enthusiastic about Celestite’s tremendous potential and excited to be part of the company’s next stage of progress.”
Terms of the transaction were not disclosed. Dowling Hales and Akin Gump served as Celestite’s financial and legal advisors, respectively. Altamont was advised by Ropes & Gray.
About Altamont Capital Partners
Altamont Capital Partners is a private investment firm based in the San Francisco Bay Area with over $1 billion of capital under management. Altamont is focused on investing in middle market businesses where it can partner with leading management teams to help its portfolio companies reach their full potential. The firm’s principals have significant experience building business success stories across a range of industries, including financial services, government services, consumer/retail, industrials, and healthcare.
Celestite Holdings, headquartered in Dallas, TX, operates multiple insurance programs in several Southwestern states. Celestite began writing non-standard auto policies in Texas with its initial program in 2007 and has since expanded to additional states and programs. The Company works on behalf of insurers and reinsurers to market, underwrite coverage, manage claims and administer virtually all traditional insurance company functions.