Thomas H. Lee Partners to Become Majority Shareholder of Carpe Data

Private equity firm Thomas H. Lee Partners (THL) today said it made a strategic growth investment in Carpe Data, a provider of data products for the insurance industry. With the investment, THL will become the majority shareholder of Carpe Data, whose founders and management will continue to hold a meaningful stake, as well as a group of existing strategic investors.

Headquartered in Santa Barbara, California, Carpe Data uses proprietary algorithms and AI to transform emerging and alternative data into predictive and actionable insights for insurance carriers across the globe. Carpe Data’s data enables insurers to automate claims decisions and improve outcomes across the insurance lifecycle.

THL’s investment will be used to support continued innovation as well as capture opportunities for the company to expand.

“As leading investors in the insurance and automation space for over 20 years, we have witnessed the growing demand among carriers for automated alternative data and predictive analytics to improve performance and gain a competitive edge in all key workflows,” said Edward Shahnasarian, director at THL.

This also marks the eighth investment for THL’s flagship fund, Thomas H. Lee Equity Fund IX, which invests across three industry verticals, including financial technology and services.

THL’s overall insurance portfolio includes Agencyport Software, Allied World Assurance Co., AmeriLife, AXIS Capital, Endurance Specialty, Insurance Technologies and Sedgwick Claims Management Services.

THL’s Ganesh Rao, managing director and Head of Financial Technology & Services; Gary DeGruttola, executive advisor; Edward Shahnasarian, director; and Timothy Ferris, vice president, will join Max Drucker, CEO, and Geoff Andrews, COO, on the Carpe Data board of directors as part of the deal.

Cooley LLP served as legal counsel and William Blair served as financial advisor to Carpe Data. Kirkland & Ellis LLP served as legal counsel and Raymond James & Associates served as financial advisor to THL.

Source: Thomas H. Lee Partners

Topics Mergers & Acquisitions