Appleby secures growth investment from New Mountain Capital

Appleby, the specialist offshore law and corporate services provider with a significant insurance-linked securities practice, has secured a minority growth investment from affiliates of New Mountain Capital, in a move that is set to accelerate the law firm’s growth strategy.

Under the terms of the agreement, New Mountain, a growth-oriented investment firm with roughly $60 billion in assets under management, will take a minority interest in a newly established company in the Cayman Islands that will indirectly hold Appleby Global Group LLC.

Appleby Global Group LLC operates as a managed service organization (MSO) for Appleby’s law firms and the owner of the Appleby Global Services entities in compliance with local regulations.

As per the announcement, Appleby will continue to be led by its existing management team and partners, who will retain majority ownership of the business, while Malcolm Moller, Appleby’s Group Managing Partner, will take on the title of CEO of the law firm following the completion of the transaction.

Appleby also confirmed that the law firm entities will remain owned and controlled by Appleby partners who are qualified in the relevant jurisdictions.

Headquartered in Bermuda, the leading domicile for insurance-linked securities (ILS), Appleby’s Insurance & Reinsurance practice specialises in the legal structuring, registration, and listing of alternative risk-transfer instruments.

Appleby’s partners and lawyers advise on a significant number of the ILS and catastrophe bond transactions domiciled in Bermuda and in other jurisdictions. The firm guides its clients and offers expert advice and legal services on catastrophe bonds, special-purpose insurers (SPIs), reinsurance sidecars, life-insurance securitisations, and other fully collateralised structures.

In addition, the law firm has played a key role in helping get numerous new reinsurance start-ups, life reinsurers and asset intensive sidecar structures to market.

The firm also provides a seamlessly integrated offering of legal services, including both corporate and disputes services, and fiduciary services to the world’s top financial institutions, investment managers, insurers, corporations, and select private clients, including ILS managers, ILS funds and their investors.

Malcolm Moller commented: “Client service has always been at the heart of everything we do. The decision to accept investment from New Mountain has been driven by our desire to enhance client experience, to develop opportunities for our colleagues, and to continue to develop a platform that is the first port of call for clients in each of the jurisdictions in which we operate. New Mountain’s investment positions the firm to expand into new jurisdictions and service lines, further invest in technology and innovation, and enhance client service”

Moller continued: “We are pleased New Mountain recognizes Appleby’s pre-eminent positioning and growth opportunity, and are excited to partner with an investor that has a long track record of supporting fast growing professional services organizations.”

Sara Israel, Director at New Mountain, said: “We have been deeply impressed by Appleby’s dedication to the highest-quality client service, differentiated expertise, longstanding client relationships, and their performance-driven culture, which have established the Firm as a market leader in offshore law and corporate fiduciary services. We look forward to enabling and accelerating Appleby’s next phase of growth with investments in talent, technology, and M&A.”

Harris Kealey, Managing Director at New Mountain added: “Appleby enjoys a leading reputation across its jurisdictions and we see strong, long-term growth tailwinds across each of those markets. New Mountain is well-positioned to support the ambitious growth strategy – we have deep experience scaling professional services firms through organic expansion and strategic acquisitions. The opportunity for Appleby employees to increase equity ownership and participate in the future success of the firm is central to our partnership approach.”

Guggenheim Securities is serving as financial advisor, while Ropes & Gray LLP is serving as legal advisor to Appleby. At the same time, Piper Sandler is serving as financial advisor to New Mountain Capital with Simpson Thacher & Bartlett LLP and Addleshaw Goddard LLP serving as legal advisors.