CFC gains ‘major investment’ from Europe’s leading PE firms

Specialist insurance provider  CFC has secured a “major investment” co-led by two of Europe’s leading private equity firms, EQT and Vitruvian Partners.

The transaction, subject to regulatory approval, will see CFC nearly double its employee shareholders from 175 to over 300. Employees will remain the largest shareholding block in CFC.

A specialist insurance provider focused on emerging risk and cyber, and Lloyd's managing general agent (MGA), CFC writes 50 products across 20 different classes of specialist insurance focused primarily on SME businesses.

The company was founded in 1999, but over the past three years, CFC says it has significantly grown its employee count and established a global footprint with more than 500 staff located across the UK, US, Europe and Australia. Earlier in the year, CFC also launched its own Lloyd’s Syndicate.

According to the company, CFC has an annual premium run rate in excess of £750 million ($1 billion) and delivered an organic EBITDA CAGR of 35 percent over the last five years.

Dave Walsh, CFC’s founder and group chief executive officer, said: “We’re delighted to welcome EQT as an investor alongside Vitruvian. Both EQT and Vitruvian’s focus on high-growth technology companies and commitment to creating a positive impact through their portfolios is a natural fit with CFC and our ethos as an independent, employee-owned business. EQT’s investment, and Vitruvian’s reinvestment, is testament to CFC’s track record of delivering strong, profitable growth underpinned by the expertise of our people and our history of market-leading technology innovation.”

“As we look ahead, we see a risk landscape that is rapidly shifting, with ever-expanding cyber threats, new insurance challenges presented by intangible assets and evolving risks in rapid growth sectors,” Walsh added. “ CFC has a key role to play in helping our growing customer base address these challenges, while the pioneering technology we’ve built over the last two decades is enabling us to deliver at increasing scale. We look forward to partnering with EQT and thank Vitruvian for their continued partnership. It has never been a more exciting time to be at CFC.”

Robert Maclean, partner at EQT, said: “ CFC is a truly innovative insurance business with technology at its core and a track record of growth and profitability which surpasses even the most mature fintech businesses we’ve seen. The accelerating pace of investment in its core platform aligns perfectly with EQT’s approach of future-proofing companies.”

Joe O’ Mara, partner at Vitruvian, commented: “As longstanding partners and investors in CFC, we couldn’t be more enthusiastic about the road ahead. We’ve witnessed first-hand what a remarkable business CFC is - a tribute to the leadership team, the culture they’ve created and the commitment to excellence and innovation that has kept CFC at the forefront of the insurance market.”

Sofia Ahuja, managing director at EQT, added: “ CFC’s unrivalled reputation in cyber insurance and focus on emerging risk areas ensures that it is well-placed to capture the significant growth expected in the classes it writes. We’re delighted to invest alongside Vitruvian at this exciting stage in CFC’s journey.”

Stephen Byrne, partner at Vitruvian, added: “We would like to thank the whole CFC team for a great partnership over the last four years and we are excited to be able to continue to support their ambitions for the future.”

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