SAR, a Bethesda, Md., startup using data analytics to help publicly listed companies assess securities litigation risk, has closed an unquantified capital investment round led by New York-based Anthem Management. The company also named Anthem’s managing partner, Daven Shastri, a former Goldman Sachs executive, to its board.
“Focus and diligence have served SAR well since our inception. I am confident in selecting Anthem to be our lead long-term capital growth partner,” said SAR founder and CEO Nessim Mezrahi, a former RSA Group principal. “With Daven on our board, SAR will lead the public company D&O insurance space through responsible technological innovation,” he added, referring to liability cover it creates for directors and officers.
“We’re excited to have completed our investment in SAR. Our focus on secular growth and strong leadership makes SAR a compelling partner at this stage of the company’s lifecycle,” said Shastri, who was a senior executive at Diameter Capital Partners prior to founding Anthem. “Our investment in the company represents a long-term commitment to both the business and industry,” he added.
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Founded in 2018 by Mezrahi, SAR is in a niche insurance business, helping large companies mitigate litigation risks for themselves and their senior executives. It says it uses specialized data science and court-approved methodologies to quantify the risks. SAR’s customers include leading global insurance companies that provide cover to publicly listed companies.
One segment of SAR’s business, called D&O, typically offers executives personal liability and financial loss protection from allegedly wrongful acts during their functioning as corporate officers. D&O insurance policies cover exposures arising from, say, actual or alleged error, mis-statement, misleading statement, neglect, breach of duty, or omission. It also offers balance sheet protection to the corporation.
The capital infusion is expected to advance SAR’s implementation of the U.S. Federal Court-approved event study methodology, and directly aid underwriting analytics, besides helping with handling of complex securities claims, and empirically backed actuarial support.
