Richmond National Group, Inc. and its affiliates have closed a $30 million funding round to support their specialty excess and surplus lines insurance business. Investors include existing backers HF Capital of Knoxville, Tenn., Charlotte, N.C.-based Bonhill Capital, Memphis, Tenn.-based WT Holdings and employees. So far, the Richmond, Va.-based insurer has raised $100 million from investors, including a Series A round worth $70 million in 2021.
“We appreciate the strong support of our shareholders. This capital will enable us to build on the momentum we have experienced thus far and will support our continued organic growth,” said Joe Kavanagh, Richmond National’s founder and CEO.
Huge Market Opportunit
A 25-year financial industry veteran, Kavanagh has worked in the investment banking group of Compass Point Research & Trading. He served FBR & Co. in Arlington, Va., for 14 years, during which time he helped build, and ultimately lead, its Insurance Investment Banking Group. Kavanagh’s other stints were at First Union Securities, later known as Wachovia Securities, Marsh & McLennan Companies and CIBC Oppenheimer. He has a BS degree from Washington & Lee University and an MBA from New York University’s Stern School of Business.
Richmond National operates through its subsidiary, Richmond National Insurance Company, which has built a business around so-called excess and surplus lines, or E&S, an estimated $52 billion market ignored by standard insurers because of higher risks. It underwrites a diverse mix of specialized property, casualty and professional liability products for small and mid-sized businesses. Richmond National Insurance holds an A- (Excellent) rating from A.M. Best Company.
“We are really pleased with what management and our team have accomplished over the past several years,” said Wellford Tabor, who chairs Richmond National’s board. “We feel like we have the systems, structure, and most importantly, the people to build a very high-quality specialty E&S insurance company for our customers and shareholders.”
Pilot Flying J Chair’s Backing
HF Capital, based in Knoxville, Tenn., is the family office of James Arthur Haslam III, the scion of the founder of Pilot Corporation and Pilot Oil Corp. It makes portfolio investments out of a $226.5 million fund, HF Private Funds Pool, raised in 2021.
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Haslam is the chairman of Pilot Flying J, one of the brands of Pilot Corp., the country’s biggest operator of truck stops and travel centers. Pilot is now controlled by Warren Buffett’s Berkshire Hathaway. Haslam and his wife Dee own the Cleveland Browns of the National Football League (NFL), the Columbus Crew of Major League Soccer (MLS), and have a stake in the Milwaukee Bucks of the National Basketball Association (NBA).
Bonhill Capital, of Charlotte, N.C., pursues private capital opportunities in the lower middle market. It is led by Trey Sheridan, a 25-year veteran in private equity.
WT Holdings, based in Memphis, Tenn., is a privately owned insurance holding company offering personal and commercial property and casualty insurance nationwide through its subsidiaries.
