Cornell Capital and Hudson Structured Acquired Vault from Allied World

On 11/12/2020, Cornell Capital LLC (“Cornell Capital”) and Hudson Structured Capital Management Ltd. (“HSCM”) announced their agreement to acquire a majority stake in Vault Holdings, LLC (“Vault”) from Allied World Assurance Company Holdings, Ltd. (“Allied World”)

• Terms of the agreement have not been disclosed
• Upon closing, Vault expects to maintain its “A-” (strong) rating from A.M. Best
• Allied World will retain a minority interest in Vault
• Also will support transition under an administrative services agreement, including reinsurance support
• Co-Founder and former CEO of Allied World, Scott Carmilani, will continue in his role as Chairman of Vault
• Vault leadership team, led by Co-Founder and CEO, Charles Williamson, will continue to operate the business

Cornell Capital and HSCM will also make a primary investment in Vault to support growth

Launched in 2017, Vault is a high-net-worth insurer operating under a unique hybrid business model

• Acting as a reciprocal exchange, a managing general agent, and an E&S insurance provider
• Vault offers customizable services and policies to insure high-value homes and cars and collections
• Distributes its products solely through a national network of appointed agents and brokers

Cornell Capital is a U.S.-based private investment firm with over $4.0bn of assets under management

• The firm takes a value-oriented approach to investing across the consumer, financial and industrial sectors
• Founder and Senior Partner, Henry Cornell, leads a highly-seasoned senior leadership team

HSCM is an asset manager focused on alternative investments

• Launched in 2016 with a focus on the (re)insurance and transportation sectors
• As of 11/1/2020, HSCM has more than $2.75bn in assets under management and committed capital

Transaction expected to close in Q1 2021 subject to customary closing conditions and regulatory approval

TCMA acted as Financial Advisor to Cornell, HSCM and Vault; key services include:

• Developing a robust and comprehensive financial model inclusive of rating agency factors
• Preparation of materials required for the A.M. Best rating process
• Providing objective advice and acting as a confidant to the buyers throughout the process

TCMA’s advice included insights from Tiger’s reinsurance, analytics, and rating agency specialists