Canadian Underwriter

Cunningham Lindsey Group signs agreement with private equity firm

November 30, 2007   by

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Cunningham Lindsey Group has signed a definitive agreement regarding substantial investment from Stone Point Capital, a private equity firm, and the buy-out of Cunningham Lindsey Group’s minority shareholders.

Under the agreement, Stone Point will acquire a 51 per cent interest in the operating companies of Cunningham Lindsey in return for an investment of approximately US$80 million. Fairfax Financial Holdings will invest approximately $30 million. Senior management of Cunningham Lindsey and its operating companies will be investing, as well.

Fairfax and senior management will own approximately 45 per cent and 4 per cent, respectively, a Cunningham Lindsey release says.

Cunningham Lindsey Group will continue to function through its five operating companies, with current management teams and organizational structure remaining in place, according to the release.

“To bring in a new partner, with a proven track record of success in the financial services market, will help us to accelerate our strategy for growth,” Jan Christiansen, president and CEO of Cunningham Lindsey Group, said in a statement. “The additional investment by our majority shareholder, Fairfax, underscores its continued support for the company, while the involvement of management in ownership is a sign of their confidence in Cunningham Lindsey, ensuring stability within the organization and continuity for our clients.” •

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