Cornell Capital and Hudson Structured Capital Management’s Acquisition of a Majority Interest in Vault Insurance

Debevoise & Plimpton LLP advised Cornell Capital, while Willkie represented Allied World Assurance Company Holdings on the deal.

Cornell Capital LLC, a private investment firm, and Hudson Structured Capital Management Ltd., doing its re/insurance business as HSCM Bermuda (“HSCM”), an asset manager focused on alternative investments, have entered into an agreement to acquire Vault Holdings, LLC, a fast-growing provider of personal insurance to high-net-worth clients, from Allied World Assurance Company Holdings, Ltd and Fairfax Financial Holdings.

Launched in October 2017, Vault offers a modern insurance experience that combines an advanced technology platform and personalized concierge service designed to meet the needs of affluent clients. The Company operates under a unique hybrid business model, acting as a reciprocal insurance exchange, managing general agent, and excess-surplus insurance provider. Vault offers customizable services and policies to insure high-value homes and cars, as well as collections of art, jewelry, wine, antiques, and memorabilia. The Company distributes its products solely through a national network of appointed agents and brokers.

Cornell Capital LLC is a U.S.-based private investment firm with over $4.0 billion of AUM and offices in New York and Hong Kong. Partnering with strong, entrepreneurial management teams, the firm takes a value-oriented approach to investing across the consumer, financial and industrial sectors.

Hudson Structured Capital Management Ltd. is an asset manager focused on alternative investments seeking mezzanine level returns, with focus on the Re/Insurance and Transportation sectors. HSCM launched in 2016 and as of November 1, 2020, has more than $2.75 billion in assets under management and committed capital.

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management. A subsidiary of Fairfax, Allied World, through its subsidiaries, is a global provider of insurance and reinsurance solutions. 

The Debevoise team was led by insurance M&A counsel Michael Devins (Picture) and included Insurance M&A partner Nicholas Potter and associates Nicole Blansett, Khrystyna Rayko, Rebecca Sayles and Sasha Semach, M&A partner Kevin Schmidt and counsel David Iozzi, benefits partner Lawrence Cagney and associates Wendy Widman and Charity Wyatt, tax partner Daniel Priest and associate Jay Evans and intellectual property partner Jeffrey Cunard and associate Jason LeBlanc.

The Willkie deal team was led by partners Steven Seidman and Sean Ewen

Involved fees earner: Charity Brunson Wyatt – Debevoise & Plimpton; Lawrence Cagney – Debevoise & Plimpton; Jeffrey Cunard – Debevoise & Plimpton; Michael Devins – Debevoise & Plimpton; Jay Evans – Debevoise & Plimpton; David Iozzi – Debevoise & Plimpton; Nicholas Potter – Debevoise & Plimpton; Daniel Priest – Debevoise & Plimpton; Khrystyna Rayko – Debevoise & Plimpton; Rebecca Sayles – Debevoise & Plimpton; Kevin Schmidt – Debevoise & Plimpton; Sasha Semach – Debevoise & Plimpton; Wendy Widman – Debevoise & Plimpton; Sean Ewen – Willkie Farr & Gallagher; Steven Seidman – Willkie Farr & Gallagher;

Law Firms: Debevoise & Plimpton; Willkie Farr & Gallagher;

Clients: Allied World Assurance; Cornell Capital LLC;

Author: Ambrogio Visconti