Elementum Sold a Minority Stake to White Mountains

On June 3rd, Elementum announced a sale of a minority equity stake to White Mountains

• Elementum’s principals will continue to control the operation of the business following this transaction
• Elementum’s principals will also continue to own a significant majority of the company
• Other terms of the transaction were not disclosed

White Mountains also invested $50 million across Elementum’s funds

Formed in 2009, Elementum Advisors is an SEC-registered investment advisor based in Chicago

• Focus on investments exposed to natural catastrophe event risk
• The company has grown to over $4 billion in assets under management since inception
• Elementum manages portfolios across a range of liquidity and risk/return profiles
  • Including catastrophe bonds and collateralized reinsurance investments
• Elementum is the third largest independent manager of insurance linked securities (“ILS”)

White Mountains (WTM) is a publicly-traded, Bermuda-domiciled holding company founded in 1999

• ~$3bn market cap with a demonstrated appetite for insurance acquisitions
• The company conducts most of its business through its insurance subsidiaries and other affiliates
• WTM focuses on long-term investments in businesses with strong owners and management teams

TCMA acted as a financial advisor to Elementum in the transaction

• Led a targeted sale process and introduced the counterparties
• Assisted in the development of key marketing materials and presentations
• Offered key insight around key transaction terms and conditions
• Provided valuable advice in the negotiation of final transaction terms
• Provided objective advice and acted as a sounding board to the seller throughout the process