Mosaic secures strategic growth capital

August 1, 2023 | Mosaic Insurance

Hamilton, Bermuda—Mosaic Insurance has secured strategic investment from two US growth-capital providers to drive the specialty insurer’s talent acquisition and product development.

Alternative asset manager Atalaya Capital Management and financial services-focused private-equity firm Culpeper Capital Partners LLC will take a minority stake in Mosaic, which is backed by San Francisco-based Golden Gate Capital. Under the deal, Culpeper Senior Managing Director David King will join Mosaic’s Board of Directors, effective immediately. King was a key backer for Bermuda-based insurance company Ironshore, formerly led by Mosaic senior management.

“We’re excited to announce this important partnership for Mosaic as we grow critical mass and continue to take advantage of significant underwriting opportunities,” said Mitch Blaser, Co-Founder and Co-CEO of Mosaic. “Atalaya and Culpeper value what we’ve built to date, as well as Mosaic’s future growth potential, and they bring additional diverse financial-sector expertise that will be critical for the next stage of our journey. We look forward to working with them.”

“We continue to see strong product demand propelled by prevailing economic conditions and geopolitical uncertainty,” noted Mosaic Co-Founder and Co-CEO, Mark Wheeler. “Growth opportunities for Mosaic are accelerating as we look to augment expertise and increase capacity in all lines across our global network.”

Mosaic launched in February 2021 with a core London platform through its Lloyd’s Syndicate 1609, and since then has undergone rapid global growth, leveraging both its syndicate’s balance sheet and trade-partner capital. Today, the company underwrites seven focused products across seven geographies—cyber, transactional liability, political risk, political violence, environmental liability, financial institutions, and professional liability. Headquartered in Bermuda, Mosaic has close to 150 employees, including teams in London, New York, Chicago, Toronto, Frankfurt, Dubai, and Singapore.

“Culpeper is delighted to partner with Atalaya to invest in Mosaic,” said Aaron Slan, who led the deal for Culpeper. “We previously backed Mosaic’s executive team and were able to build on this trusted, decades-long relationship and our industry knowledge to originate and structure a transaction to put Mosaic in a strong position to build on its substantial achievements to date. We have been impressed by Mosaic’s innovative model and go-to-market approach, and we’re excited to be part of the company’s next chapter.”

“We are thrilled to be working alongside Golden Gate and Culpeper to support Mosaic in its mission of scaling specialty insurance platforms,” said Bharath Subramanian, a Managing Director at Atalaya. “Our investment in Mosaic continues Atalaya’s long track record of investments across the insurance and broader financial services space. The company’s differentiated and dynamic business and capital model is well-positioned to manage complex risks on a global basis.”

Following the strategic investment by Atalaya and Culpeper, Golden Gate Capital remains a majority controlling shareholder.

Citigroup Global Markets Inc. acted as exclusive placement agent to Mosaic, which was also assisted in the transaction by law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP. Atalaya and Culpeper were advised by Greenberg Traurig LLP.

PHOTO CAPTION: (From left) Co-Founders and Co-CEOs of Mosaic Insurance, Mitch Blaser and Mark Wheeler; and new Mosaic Board Director David King, Founder and Senior Managing Director at Culpeper Capital Partners LLC