Centerbridge Partners’ $100 Million Investment in TypTap Insurance Group

Kirkland & Ellis advised Centerbridge Partners, L.P. on the deal.

Centerbridge Partners, L.P., a private investment management firm, completed its $100 million investment in HCI Group, Inc. (NYSE:HCI) subsidiary corporation, TypTap Insurance Group, Inc., a rapidly growing, technology-driven insurance company.

The investment, representing about 11.75% of TypTap, implies a post-money valuation for TypTap of approximately $850 million. In exchange for its investment, Centerbridge received from TypTap preferred shares with liquidation, dividend, redemption, and other rights and received from HCI a four-year warrant to purchase 750,000 HCI common shares at $54.40 per share. The preferred shares automatically convert to common shares upon completion of an initial public offering meeting certain parameters. Terms of the investment also entitle Centerbridge to appoint one director to both the HCI and TypTap boards of directors.

J.P. Morgan Chase & Co. acted as sole placement agent on the transaction.

The Kirkland team advising Centerbridge was led by corporate partner Rajab Abbassi (insurance; Picture), capital markets partner Jennifer Lee, debt finance partners Judson Oswald and Omar Raddawi, tax partners Mike Beinus and Polina Liberman, and insurance regulatory partner Parimah Hassouri. 

Involved fees earner: Rajab Abbassi – Kirkland & Ellis; Michael Beinus – Kirkland & Ellis; Parimah Hassouri – Kirkland & Ellis; Jennifer Lee – Kirkland & Ellis; Polina Liberman – Kirkland & Ellis; Judson Oswald – Kirkland & Ellis; Omar Raddawi – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: Centerbridge Partners;

Martina Bellini

Author: Martina Bellini