Novacap’s new financial services fund acquires Optiom

Novacap has acquired Calgary-based Optiom Inc, a specialty insurance managing general underwriter and provider of vehicle replacement coverage.

Novacap has acquired Calgary-based Optiom Inc, a specialty insurance managing general underwriter and provider of vehicle replacement coverage. No financial terms were disclosed. Optiom is the inaugural investment of Novacap Financial Services I, launched last November. UBS Securities Canada Inc was financial advisor to Optiom on the deal while Borden Ladner Gervais LLP provided legal advice. And, McCarthy Tétrault LLP acted as legal advisors to Novacap on the transaction.

PRESS RELEASE

MONTREAL, Sept. 14, 2020 /PRNewswire/ – Novacap, one of Canada’s leading private equity firms, announced today that it acquired a majority interest in Optiom Inc. (“Optiom”), a leading specialty insurance managing general underwriter (“MGU”) and provider of vehicle replacement coverage.

Headquartered in Calgary, Alberta, Optiom takes pride in a strong reputation for providing professional and dependable administration of specialty vehicle replacement insurance and guarantee programs across Canada. Optiom’s knowledgeable and experienced team is committed to offer a higher standard of customer service, and Optiom has thrived through superior customer satisfaction.

“We’re thrilled to welcome Optiom into our portfolio of companies. We are impressed with the quality of the Optiom business and their track record of profitable growth. Optiom is the first investment of the Novacap Financial Services I fund since its first closing in November 2019. We are the first private equity firm in Canada to launch a fund dedicated to financial services businesses,” said Marcel Larochelle, Managing Partner, Financial Services at Novacap.

“We were extremely impressed by the dedication to best-in-class service shown by Robert Jack and his team toward their distribution partners and end clients. Novacap will support Optiom’s growth in new markets across Canada. We are convinced that the combination of their expertise with our focus on operational excellence will drive Optiom through its next phase of growth. We are all very excited to enter this partnership with the management team,” added Rajiv Bahl, Senior Partner at Novacap.

“For more than 16 years, Optiom has developed superior equity protection and exceptional service, thanks to the quality of our people, our products, and our insurers. We measure our success through the satisfaction of our clients and support the continued education and training of our team. We are proud to unite with a partner of Novacap’s calibre to drive Optiom into its next stage of expansion,” said Robert Jack, CEO of Optiom.

UBS Securities Canada Inc. acted as exclusive financial advisor to Optiom and Borden Ladner Gervais LLP acted as legal advisors.

McCarthy Tétrault LLP acted as legal advisors to Novacap.

About Optiom
Optiom is a specialty MGU of insurance products, offering vehicle replacement coverage with Lloyd’s Coverholder status. Optiom offers a wide range of protections for both total losses and partial losses to ensure protection of their customers’ assets. For more information, please visit www.optiom.com.

About Novacap
Founded in 1981, Novacap is a leading Canadian private equity firm with CA$3.6 billion of assets under management. Its distinct investment approach, based on deep operational expertise and an active partnership with entrepreneurs, has helped accelerate growth and create long-term value for its numerous portfolio companies. With an experienced management team and substantial financial resources, Novacap is well positioned to continue building world-class businesses. Backed by leading global institutional investors, Novacap’s deals typically include leveraged buyouts, management buyouts, add-on acquisitions, IPOs, and privatizations. Over the last 39 years, Novacap has invested in more than 90 companies and completed more than 130 add-on acquisitions. The firm has offices in Toronto, Ontario and Brossard, Quebec. For more information, please visit www.novacap.ca.