MGU Fidelis Partnership Completes $2B Refinancing to Support Growth Strategy

The Fidelis Partnership (TFP), the Bermuda-headquartered managing general underwriter, announced the successful completion of a $2 billion refinancing transaction.

Led by Blackstone Credit & Insurance, the transaction marks a significant milestone for The Fidelis Partnership, which in January 2023 separated from the balance sheet insurance companies that are part of Fidelis Insurance Group.

The Fidelis Partnership has grown from $3.0 billion to in excess of $4.1 billion gross written premium (GWP) across more than 100 lines of business.

This growth has been supported by a series of strategic initiatives over the last 18 months, including most recently establishing a new Lloyd’s syndicate in just 10 weeks, opening an Abu Dhabi office and expanding the Pine Walk incubator platform with five signed MGAs, TFP said.

The transaction supports TFP’s growth strategy, which includes:

• Broadening reach in the Middle East, Africa, Asia and Latin America, all of which have increasing demand for specialist re/insurance solutions, enhanced by Lloyd’s licensing and TFP’s new Abu Dhabi office
• Expanding the Pine Walk platform, by recruiting top underwriters to establish niche underwriting cells within the platform, which is expected to grow to $1 billion-plus of GWP in 2025
• Leveraging The Fidelis Partnership Syndicate 3123’s licensing, credit rating, access to Lloyd’s only markets and additional capacity
• Upsizing in lines of business where TFP is currently underweight versus the market opportunity.

“When I founded Fidelis in 2015, I don’t think any of us could have anticipated the success we would achieve over the course of the following decade. I have been operating in the market for 40 years and The Fidelis Partnership is by far the most exciting part of my career,” commented Richard Brindle, chairman and group CEO of TFP, in a statement.

“My team and I have built the largest and most diversified independent MGU globally, operating in a complex market that more than ever needs creative underwriting for evolving risks in an increasingly multipolar world,” he added.

Brindle said that Lou Salvatore and the Blackstone team underwrote TFP’s initial debt in 2022.

“We have been highly impressed by the strong growth and operating performance that TFP has demonstrated since our initial involvement to support its bifurcation. We are thrilled to continue our collaboration with Richard Brindle and the team at TFP, and believe this transaction exemplifies our focus on taking lead roles in financing large-scale solutions to support world-class businesses and helping them grow,” according to Lou Salvatore, senior managing director at Blackstone Credit & Insurance.

Blackstone was joined in the debt investment and revolving credit facility along with Oak Hill Advisors, Barings, PNC and Barclays. This transaction was advised by Evercore Partners International LLP, Kinmont and Willkie Farr & Gallagher (UK) LLP.

Source: The Fidelis Partnership

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