New private equity firm Preservation Capital Partners has made its first investment with the acquisition of cyber insurer Ascent Underwriting.
Preservation Capital was founded earlier this year and is based in London. It plans to specialise in the financial services sector and is backed by ultra-high net worth family offices and institutional investors.
Ascent Underwriting was established in 2013 and provides cyber and specialty insurance cover. The investment by Preservation Capital will be used to support Ascent’s growth through the development of new business lines and complementary products.
This will be achieved through the acquisition of emerging risk and specialist managing general agents (MGAs) and through selective team hires. The funding will also be used to develop Ascent’s proprietary OPTIO technology platform.
The existing management team of Ascent will retain a significant shareholding in the business and will continue to manage the business.
Jatender Aujla, a Partner of Preservation Capital, said: “The management team of Ascent has done a fantastic job in rapidly growing the business in an attractive end-market that is expected to experience significant growth over the next few years. The team has done this while maintaining exceptional underwriting performance. We see significant opportunity for further growth within cyber and in other emerging risk/specialty business lines and look forward to working with the management team to further build the business in its next stage of development.”
David Umbers, Chief executive of Ascent, added: “Since launching, Ascent has grown rapidly to become a successful and well-regarded MGA. Our independence is important, and we are pleased that our independence will be maintained through this deal with Preservation Capital who will provide us with investment to support our ambitious growth plans.”