Velocity Finalizes Sale of VSIC to FM
Deal News | May 06, 2025 | Re-Insurance News
FM, a property mutual insurance company, has completed the acquisition of Velocity Specialty Insurance Company (VSIC) from its former parent, Velocity HoldCo, LLC. This transaction marks a significant exit for Oaktree Capital Management, L.P., from Velocity's interests, as it follows the sale of Velocity Risk Underwriters, LLC (VRU) to Ryan Specialty. Under Oaktree’s partnership since 2022, Velocity underwent rapid growth and transformation including the capitalisation of VSIC. Financial and legal advisors facilitated this multi-faceted transaction, concluding Oaktree's successful investment in the insurance sector.
Sectors
- Insurance
- Private Equity
- Advisory Services
Geography
- United States – The companies and transactions involved are based in or have significant operations within the United States.
Industry
- Insurance – The article revolves around transactions involving specialty insurance companies and mutual insurance firms.
- Private Equity – Oaktree Capital Management, a key participant, is a private equity firm, which was involved in the acquisition and subsequent sale of Velocity.
- Advisory Services – Multiple advisory firms including financial and legal advisors were involved in facilitating the transaction.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| FM | Acquirer | Company | A mutual property insurance company that acquired Velocity Specialty Insurance Company. |
| Velocity Specialty Insurance Company (VSIC) | Target company | Company | The specialty insurance arm of Velocity that was acquired by FM. |
| Velocity HoldCo, LLC | Vendor | Company | The former parent company of VSIC and Velocity Risk Underwriters, LLC. |
| Oaktree Capital Management, L.P. | Private Equity Owner | Company | A global private equity firm that facilitated the growth and eventual divestment of Velocity. |
| Ryan Specialty | Acquirer | Company | Acquired Velocity Risk Underwriters, LLC, as part of the overall transaction. |
| Velocity Risk Underwriters, LLC (VRU) | Acquired Company | Company | A previously Oaktree-owned company involved in a sale to Ryan Specialty. |
| Insurance Advisory Partners LLC | Financial Advisor | Company | Provided financial advisory services to Oaktree and Velocity during the transaction. |
| Howden Capital Markets & Advisory | Financial Advisor | Company | Contributed financial advisory services to Oaktree and Velocity. |
| JP Morgan Securities LLC | Financial Advisor | Company | Provided financial advisory services to Ryan Specialty. |
| Debevoise & Plimpton LLP | Legal Advisor | Company | Served as legal counsel to Velocity and Oaktree. |
| Sidley Austin LLP | Legal Advisor | Company | Provided legal advisory to Ryan Specialty. |
| Willkie Farr & Gallagher LLP | Legal Advisor | Company | Acted as legal advisors for FM. |
| Greg Share | Managing Director | Person | Managing Director at Oaktree Capital Management, key figure in the transaction. |
| Jake Rothfuss | CEO of VRU | Person | Chief Executive Officer at Velocity Risk Underwriters, LLC. |
| Phil Bowie | Chairman of VRU and CEO of VSIC | Person | Chairman at Velocity Risk Underwriters, LLC, and CEO of Velocity Specialty Insurance Company. |
| Patrick C. George | Senior Vice President | Person | Senior Vice President at Oaktree Capital Management. |