Beat Capital Partners and Paraline UK are merging in a move designed to "enhance and further build Beat’s platform to support independent underwriting businesses".
Following the merger Paraline Group will join Neon Holdings Ltd as Beat’s strategic investment partner.
In addition, Paraline’s John Struck and Bruce Schnitzer will join Beat’s board of directors, which is to be chaired by former CEO of Willis Re, John Cavanagh.
Beat will also have a new chief financial officer (CFO), Paul Rayner, the active underwriter of Syndicate 4242 and a Paraline Group director.
Paraline’s £110mn Lloyd’s Syndicate 4242 is managed by Asta, a third-party managing agent at the specialist Lloyd’s of London insurance and reinsurance marketplace.
Beat currently has two investments, including cyber insurer Tarian and specialty reinsurance underwriter Chord Re. The underwriting support for both facilities is led by Neon Syndicate 2468.
Co-founder of Beat, Tom Milligan, commented: “Beat has grown rapidly since its formation in 2017. This deal gives us access to a second Lloyd’s platform alongside Neon 2468 that benefits our existing investee companies and enhances our offering to proven lead underwriters who have the ambition to build their own business. We are delighted to partner with Paraline, who have a track record of successful insurance investment.”
Schnitzer added: “This transaction is a great move for our business. It brings together a talented group of established insurance leaders and a powerful shareholder group with a shared, long-term vision.”
Group CEO of Neon, Martin Reith, said: “As a founder investor in Beat, we are thrilled to be partnering with Paraline Group in the next stage of Beat’s evolution.”