NEW YORK and BROWNSVILLE, Texas, Oct. 1, 2014 /PRNewswire/ -- Palladium Equity Partners, LLC (along with its affiliates, "Palladium"), a private investment firm with over $2.5 billion in assets under management, today announced that it has made a significant investment in Pronto General Agency, Ltd. and its affiliates ("Pronto Insurance"), a leading managing general agency ("MGA") providing sales & distribution, underwriting, and claims administration services focused primarily on the non-standard auto insurance market segment in Texas. As a result of the investment, Palladium holds a majority ownership interest in Pronto Insurance, while the company's leadership team, comprised of members of the Varela family and other executives, has retained a significant minority ownership interest.
Headquartered in Brownsville, TX and founded in 1997, Pronto Insurance has experienced significant growth since launching its MGA in 2005, expanding its business model from retail insurance distribution to multiple channels of distribution, including captive locations, franchisees, and independent agents. As of today, Pronto Insurance's collected premiums are approximately $100 million.
"We are excited that Pronto Insurance has joined the Palladium family of companies, and we look forward to partnering with a firm that has significant experience in growing Hispanic-focused businesses," said Rafael Varela, founding partner of Pronto Insurance. "We share a vision for Pronto Insurance's great potential and we intend to pursue a course of strategic growth and focused investment in the months and years ahead."
"Pronto Insurance has established a terrific position in the non-standard auto insurance space, with a strong brand focused on the Hispanic market, multiple channels of distribution, and an attractive Southwest footprint," said Erik Scott, a Managing Director of Palladium. "We look forward to working with the Pronto Insurance leadership team to continue to grow the company organically by delivering a compelling mix of innovative services to its clients, as well as by pursuing acquisitions that make strategic sense both within and outside of Texas."
Pronto Insurance was advised by Sica | Fletcher.
Pronto Insurance is a provider of auto insurance solutions and other insurance products. The company, which is headquartered inBrownsville, Texas, has approximately 100 locations statewide in Corpus Christi, the Rio Grande Valley, Laredo, San Antonio, El Paso,Houston and Austin. For additional information about Pronto Insurance visit www.prontoinsurance.com.
Palladium is a middle market private equity firm with over $2.5 billion in assets under management. Palladium seeks to acquire and grow companies in partnership with founders and experienced management teams, and focuses primarily on buyout equity investments in the range of $50 to $150 million. Since its founding in 1997, Palladium has invested over $1 billion of capital in more than 20 platform investments and over 50 add-on acquisitions. The principals of the firm have significant experience in financial services, business services, food, healthcare, industrial and media businesses, with a special focus on transitioning founder-owned businesses and investing in companies it believes will benefit from the growth in the U.S. Hispanic population. In April 2014, Palladium announced the final closing of Palladium Equity Partners IV, L.P. at $1.14 billion, significantly exceeding its target. Palladium is based in New York City. For more information, visit www.palladiumequity.com.
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