Stone Point Capital’s Acquisition of a minority stake in LegalShield

Kramer Levin Naftalis & Frankel LLP served as legal advisor to Stone Point. RBC Capital Markets led the financing for the transaction. Morgan Stanley, RBC Capital Markets, and Three Ocean Partners acted as financial advisors, and Kirkland & Ellis acted as legal advisor, to MidOcean.

funds managed by private equity firm Stone Point Capital LLC (“Stone Point”) have entered into a definitive agreement to acquire a majority interest in LegalShield from funds controlled by MidOcean Partners (“MidOcean”). The deal is expected to close in the second quarter of 2018. Financial terms of the transaction were not disclosed. LegalShield’s management will be co-investing alongside Stone Point and MidOcean, which is retaining a minority stake in the business. The current management team, business model and employee base are not expected to change with this investment. The Company’s headquarters will remain in Ada, Oklahoma.

LegalShield’s mission since its founding in 1972 is to provide access to affordable legal coverage for all members – no matter how traumatic or trivial the situation. LegalShield offers subscription-based plans for legal and identity theft services and has grown to become the #1 subscription-based provider of legal plans to families and small businesses across the U.S. and Canada. The Company has a network of dedicated law firms in all 50 states and four Canadian provinces, with more than 39 provider law firms providing legal protection to over 1.7 million members. The Company’s IDShield product provides its members with monitoring services to help members take control of their personal information and combat identity theft.

A pioneer in the democratization of affordable access to legal protection, LegalShield is one of North America’s leading providers of legal safeguards and protection against identity theft solutions for individuals, families and small businesses. The 45-year-old company has more than 1,751,000 members that are covered by its legal and identity theft plans. IDShield provides identity theft protection to one million individuals. LegalShield and IDShield serve more than 141,000 businesses. Both legal and identity theft plans start for less than $25 per month. LegalShield’s legal plans provide access to attorneys with an average of 22 years of experience in areas such as family matters, estate planning, financial and business issues, consumer protection, tax, real estate, benefits disputes and auto/driving issues. Unlike other legal plans or do-it-yourself websites, LegalShield has dedicated law firms in 50 states and four provinces in Canada that members can call for help without having to worry about high hourly rates. IDShield provides identity monitoring and restoration services and is the only identity theft protection company armed with a team of licensed private investigators on call to restore a member’s identity.

The Kirkland team was led by corporate partners George Stamas (Picture), Mark Director and Andrew Herman, corporate associate Meredith Klionsky, and tax partners Thomas Evans and Michael Krasnovsky.

Involved fees earner: George Stamas – Kirkland & Ellis; Mark Director – Kirkland & Ellis; Andrew Herman – Kirkland & Ellis; Meredith Klionsky – Kirkland & Ellis; Thomas Evans – Kirkland & Ellis; Michael Krasnovsky – Kirkland & Ellis;

Law Firms: Kirkland & Ellis;

Clients: MidOcean Partners;

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Author: Ambrogio Visconti