Private equity house takes majority stake in run-off buyer Catalina

Private equity house Apollo Global Management has bought a majority shareholding in run-off buyer Catalina.

Apollo first made an investment in Catalina in December 2013.

The deal will also include investment from “certain long-term institutional and strategic investors”.

Catalina’s existing management team, led by founders Chris Fagan and Dean Dwonczyk, will continue to run the business and have a “significant” shareholding, Catalina said.

Catalina bought Allianz UK’s old employers’ liability run-off book in March last year, and also bought the run-off book of failed Irish insurer Quinn in 2015.

Fagan, Catalina’s chairman and chief executive, said: “We’re delighted that Apollo, and the long term institutional shareholders supporting it, are increasing their shareholding in Catalina.

“They are doing so at a time of significant change in the non-life insurance legacy sector which is developing faster now than at any point over the last 15 years.”

He added: “I would like to thank our exiting investors Caisse de depot et placement du Quebec and Ontario Teachers’ Pension Plan for their consistent support over the last 10 years and the role they have played in helping us to build Catalina.”

Apollo Global Management senior partner Gernot Lohr said: “We fully support the outstanding management team at Catalina and are excited about the opportunity to deepen our relationship with the business.

“Whilst already significant, the market for non-life legacy acquisitions continues to grow, and we believe Catalina is well positioned to capitalize on these opportunities due to its deep industry expertise as evidenced by its successful track record.”

Catalina was advised by Barclays, JP Morgan and Allen & Overy. Apollo was advised by Sidley Austin.