Toscafund Asset Management LLC has agreed to become Caravela‘s largest shareholder. So far, Toscafund has invested a total of 30 million euros into Caravela. Based in Lisbon, Portugal, Caravela is a P&C insurance firm.
Toscafund Asset Management LLP (“Toscafund”) announces today that it has reached an agreement with Caravela Companhia de Seguros (“Caravela”), Portugal’s leading independent P&C insurance company, to become Caravela’s largest shareholder, in a transaction combining a share capital increase and the acquisition of shares from existing shareholders. The transaction, which is subject to customary regulatory approvals, marks Toscafund’s first private equity investment in Portugal and underpins the country’s fast growing digital financial services landscape.
Established under the Caravela name and brand in 2014, the Company is Portugal’s only truly independent P&C insurance operator and the fastest growing company in the domestic market over the last couple of years. Since its formation, the Company has focused on technology having invested significantly in its digital capabilities across the insurance value chain. Today, Caravela’s product proposition covers all P&C insurance products offered in the Portuguese market.
“Over the last 5 years, with the backing of our existing investors and the strong support of Portuguese consumers, we have built the leading independent Portuguese-owned insurance company in Portugal” Luis Cervantes, Chairman and Founder of Caravela, said today. “We are very pleased to welcome a strong and internationally renowned investor such as Toscafund in the Company and we look forward to working with them in order to expand our presence in the local market and build further on Caravela’s positive momentum in the years to come.”
Fabrizio Cesario, Partner at Toscafund, commented: “We are very excited to partner with Luis and the existing shareholders of Caravela, and to support the team with our capital and specialist expertise in financial services. The investment provides an excellent fit with our strategy of supporting growing companies benefiting from technology-led market disruption and builds on Toscafund’s substantial experience in supporting successful entrepreneurs grow their businesses further.”
“Caravela is an exciting, fast-growing and profitable business with substantial growth potential. Having experienced a remarkable economic recovery since the financial crisis, the Portuguese market offers substantial upside. We are confident that Caravela, having invested heavily in technology since its formation, presents a unique business model proposition, is nimble, agile and is the right platform to enter the market and capitalize on the opportunity offered” added George Koulouris, Partner at Toscafund.
About Caravela Companhia de Seguros
Caravela is a Lisbon based independent property and casualty insurance company operating in Portugal. The Company was established in 2014 under the Caravela name and brand, following the acquisition of Macif’s operations in Portugal. Caravela focues on SME and retail clients offering a wide variety of insurance solutions to cover their risks.
With a specialized distribution network covering the entire country, Caravela has invested heavily on technology and digital capabilities simplifying the relationship with agents and customers by providing tools that allow self-servicing on policy management. The Company has also developed several innovative approaches to specific affinity groups. Caravela is very focused on technology and innovation, factors that are key in facing current and future challenges.
Caravela is backed by a strong and experienced management team with vast experience on the Portuguese insurance market and is supported by a group of prominent domestic shareholders.
About Toscafund Asset Management
Toscafund Asset Management LLP is a London-based multi-asset alternative investment management firm with over $3.5bn of assets under management. The firm was founded in 2000 by Martin Hughes and has firmly established itself as one of Europe’s leading investors in the financial services sector across both public and private markets. Alongside Tosca, the global financials equity fund, the firm’s other funds include long only activist equity, UK small-cap equity, private credit, and commercial property.
Toscafund has a long track record of supporting management teams and providing growth capital to private companies. Notable private investments in financial services companies include Aldermore Bank, Hoist, Atom Bank, OakNorth, Esure, Plurimi Wealth and LIQID.
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