RADNOR, Pa., May 26, 2022 /PRNewswire/ — Milestone Partners is pleased to announce the formation of specialty auto insurance holding company Drive Assurance Holdings LLC (“Drive Assurance”) and the related acquisition of GoAuto, LLC (“GoAuto”) and its affiliated technology platform, Adaptive Information Technologies, LLC (“AIT”).
GoAuto is a tech-focused, vertically integrated personal auto insurance platform providing low-limit policies through its managing general agent and insurance carrier subsidiaries. Founded in 2009, GoAuto distributes policies direct-to-consumer online and through 70 captive storefronts, and leveraging AIT’s proprietary data analytics and underwriting technology, has historically demonstrated lower loss ratios and higher margins than its industry peers. GoAuto’s insurance carrier’s dedicated balance sheet capacity allows greater value chain capture augmented by reinsurance relationships that enable an asset light model and mitigate retained risk.
GoAuto’s specialty market segment is growing, highly fragmented and estimated to be over 22% of $260 billion total personal auto insurance premiums. GoAuto is the third largest personal auto insurer in Louisiana with growing operations in Texas, Nevada and Ohio. Milestone plans to implement Environmental, Social and Governance and Diversity, Equity and Inclusion policies at GoAuto.
Adam Curtin, Partner at Milestone, stated: “GoAuto’s proprietary software enables superior customer analytics and data-driven operations that have established them as a market leader. We look forward to working with the management team on executing their strategic initiatives.”
Greg Tramontin, CEO and Founder of GoAuto said: “We are excited to partner with Milestone during this next stage of growth. Given their targeted sector focus on financial technology companies and robust experience in automotive financial services, we are confident that together we will continue to provide best-in-class vehicle protection products and customer service to our valued policyholders.”
Summit Partners Credit Advisors, Everberg Capital, LBC Credit Partners, Principal Alternative Credit and FS Investments provided a senior credit facility to support Drive Assurance in the transaction. Piper Sandler & Co. and Butler Snow acted as financial advisor and legal advisor to GoAuto, respectively. Troutman Pepper LLP acted as legal advisor to Drive Assurance and Milestone.
Milestone Partners (www.milestonepartners.com) is a private equity firm that partners with management to invest in leveraged buyouts and recapitalizations of middle-market businesses. Milestone targets niche, high margin segments that have compelling supply / demand dynamics within insurance, specialty finance, payments and capital markets. Transaction targets typically have revenues of $20–$500 million and EBITDA / pre-tax earnings of $10–$100 million. Based in suburban Philadelphia, Milestone Partners has closed a total of over 100 acquisitions, add-ons and sale transactions since 1995, while managing over $1.0 billion of committed equity capital.
SOURCE Milestone Partners