CVC buys major stake in Cunningham Lindsey

Cunningham Lindsey Group has been bought out by an investor group led by private equity firm CVC Capital Partners.

Investors, including Allied World Financial Services, have agreed a recapitalisation by which funds affiliated with CVC will acquire majority ownership of Cunningham Lindsey. 

The US-based loss adjuster operates in in 61 countries with approximately 7,000 staff. 

In 2007, affiliates of Stone Point Capital acquired a majority interest in Cunningham Lindsey via a public-to-private transaction, with Fairfax Financial Holdings retaining a substantial stake. 

Following the CVC recapitalisation, the existing Cunningham Lindsey management team, led by chief executive Philippe Bès, will continue to manage the company, and Bès will join the loss adjusting firm’s board of directors. 

Stone Point and Fairfax, along with the company’s management team, will remain substantial and active shareholders.

Cunningham Lindsey chief executive Philippe Bès said: “We are excited to welcome CVC as our new majority investor. CVC shares our vision for the future expansion of Cunningham Lindsey, and together with our long-standing partners Stone Point and Fairfax, will enable us to continue to expand and enhance our position in the key insurance markets. CVC’s diversified international coverage will be a tremendous asset to capitalise on as we broaden our global presence supporting the unique capabilities and expertise that our clients need.”

CVC Partner and head of the US Financial Institutions Group, Kamil Salame, said: “We look forward to bringing our global network and resources to the company and working with its highly regarded leadership team and existing investors to build on all that they have accomplished.”

Stone Point Capital chief executive Charles Davis added: “Cunningham Lindsey has experienced significant growth in revenue and profitability since our initial investment in 2007.

“We want to thank Fairfax and its chief executive Prem Watsa for choosing us to be their partners in this investment.  We also want to thank Cunningham Lindsey’s management team for the outstanding performance that it has delivered.  We are excited to remain as a continuing equity owner alongside Fairfax and CVC, two firms that we have known and respected for many years.”

The deal is subject to regulatory approval.

Cunningham Lindsey was advised on the transaction by BofA Merrill Lynch and Debevoise & Plimpton LLP. The CVC led investor group was advised by Willis Capital Markets and Advisory, Weil, Gotshal & Manges LLP and Clifford Chance. BofA Merrill Lynch, Morgan Stanley Senior Funding, RBC Capital Markets and UBS provided financing to CVC.