Insignia Capital Group’s Acquisition of a Significant Minority Stake in MediaAlpha


Petsky Prunier Securities LLC acted as exclusive financial advisor to MediaAlpha. Cravath Swaine & Moore LLP acted as legal advisor to selling equityholders and MediaAlpha. Kirkland & Ellis LLP provided legal counsel to Insignia

White Mountains Insurance Group, Ltd. (NYSE: WTM) announced that MediaAlpha has signed a definitive agreement to sell a significant minority stake to Insignia Capital Group in connection with a recapitalization transaction. The transaction values MediaAlpha at approximately $350 million.

White Mountains will remain a significant equityholder in MediaAlpha going forward with a 42% ownership interest on a fully-diluted basis. MediaAlpha’s founding managers will continue to lead the business, and each will remain a significant equityholder.

White Mountains expects to receive net cash proceeds of approximately $85 million from the transaction. The transaction will result in a gain of approximately $55 to White Mountains’s book value per share and its adjusted book value per share.

The transaction is subject to the satisfaction of customary closing conditions and MediaAlpha securing new third-party debt financing of approximately $100 million, the proceeds from which will be used to effect a dividend recapitalization.

Kirkland & Ellis advised Insignia Capital Group with a team including Sanford Perl (Picture) and Robert Wilson, and associate Melanie Harmon

Cravath advised White Mountains and MediaAlpha with a team including David J. Perkins and associates Nicholas Kypriotakis and Sung Woong (Andrew) Kang on corporate matters; partner Eric W. Hilfers, practice area attorney Romica Singh and associate Faye C. Whiston on executive compensation and benefits matters; partner Christopher K. Fargo and associates Richard Bohm and Leon B. Dalezman on tax matters; partner David J. Kappos and practice area attorney Tatiana N. Alyonycheva on intellectual property matters; partner Tatiana Lapushchik, senior attorney Kimberly A. Grousset and associate Melanie R. Cook on financing matters; senior attorney Joyce Law and practice area attorney Laurel R. Berkowitz on real estate matters; and senior attorney Annmarie M. Terraciano on environmental matters.

Involved fees earner: Laurel Berkowitz – Cravath Swaine & Moore; Richard Bohm – Cravath Swaine & Moore; Melanie R. Cook – Cravath Swaine & Moore; Leon Dalezman – Cravath Swaine & Moore; Christopher K. Fargo – Cravath Swaine & Moore; Kimberly A. Grousset – Cravath Swaine & Moore; Eric Hilfers – Cravath Swaine & Moore; Sung Woong Kang – Cravath Swaine & Moore; David Kappos – Cravath Swaine & Moore; Nicholas Kypriotakis – Cravath Swaine & Moore; Tatiana Lapushchik – Cravath Swaine & Moore; Joyce Law – Cravath Swaine & Moore; David Perkins – Cravath Swaine & Moore; Romica Singh – Cravath Swaine & Moore; Annmarie Terraciano – Cravath Swaine & Moore; Faye Whiston – Cravath Swaine & Moore; Tatiana Alyonycheva – Kaye Scholer; Melanie Harmon – Kirkland & Ellis; Sanford Perl – Kirkland & Ellis; Robert Wilson – Kirkland & Ellis;

Law Firms: Cravath Swaine & Moore; Kaye Scholer; Kirkland & Ellis;

Clients: Insignia Capital Group, LLC; MediaAlpha LLC; White Mountains Insurance Group, Ltd.;