Summit Partners has invested in more than 30 financial services companies during our 26-year history, including 10 in the insurance sector. We come to the table with a strong understanding of insurance company models.
We have guided insurance businesses through every stage of the recapitalization process, including regulatory filings, discussions with state departments of insurance, and communications with A.M. Best and other ratings agencies. Summit understands the risks, including the direct balance sheet exposure that insurance companies often manage as part of their business model, as well as the complexities of investing in mixed-model businesses with varying degrees of risk-taking and fee-based income within a single enterprise. For entrepreneurs operating in this complex and regulated industry, partnering with an experienced sector investor tends to dramatically streamline the investment process and provides a foundation for a true partnership with management following the recapitalization.
Finally, in a sector where intelligent consolidation can create enormous value, we bring significant corporate development resources through our more than 85 investment professionals, multibillion-dollar capital base, and 26-year history. We can help companies in distribution, administration, underwriting and technology grow through acquisition by assisting them in the identification, structuring, negotiation and financing of add-on transactions.
For example, we recently assisted one of our insurance services portfolio companies with an important acquisition in support of its efforts to expand into wholesale brokerage. We helped our portfolio company identify and acquire a transaction-based wholesale broker and surplus lines general agency. The acquisition not only enabled our portfolio company to broaden its distribution platform, but also improved the foundation for further growth into new geographic markets and product segments.
While it is true that the insurance sector can be complex, cyclical and regulated, we believe that it can also offer very compelling opportunities. At Summit Partners, we have the experience and resources to navigate the sector’s complexity. To that end, we actively look for exceptional management teams running businesses that are capital efficient, technology enabled and poised to become category-defining companies with the support of the right financial partner.