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FTV’s Vostrizansky on flood insurance and private equity; defense, natural gas and window cleaning add-on deals

Good morning Hubsters, Craig McGlashan here with the Tuesday Wire.

We start today by looking at private equity opportunities in the flood insurance industry sector, courtesy of Mike Vostrizansky, a partner at FTV Capital, who talks about his firm’s recent investment in Neptune Flood Incorporated.

Next up we have a round of add-on deals to tell you about, in sectors as diverse as defense, natural gas and window cleaning.

Flood insurance

PE Hub’s Obey Martin Manayititakes a look at the flood insurance sector today as he speaks to Mike Vostrizansky, a partner at FTV Capital.

FTV, alongside Bregal Sagemount, recently took a minority stake in Neptune Flood Incorporated, a digital insurtech platform and private flood insurance provider based in St Petersburg, Florida.

The rising risk of flooding in some areas of the US, as well as coverage shifting from the federally subsidized National Flood Insurance Program (NFIP) towards private players, are driving demand for flood insurance, said Vostrizansky.

You can read the full interview here.

The story struck a chord with me as over on PE Hub Europe today, Nina Lindholmspoke to Cinven partner Jorge Quemadaabout how evolving legal frameworks for the transition to a green economy are also creating opportunities for private equity firms.

We also had a deal in the insurance technology sector to report, as Pollen Street Capital announced plans to invest in Wide Group, a technology-led commercial insurance broker.

Defense

iNovex, which is backed by Enlightenment Capital, has agreed to acquire Innoplex, a Columbia, Maryland-based defense contractor.

Natural gas

Foremark, which is backed by SK Capital Partners, has acquired NexGen Chemical Technologies, a Texas-based provider of natural gas sweetening solutions.

Window cleaning

Tendit Group, a portfolio company of Osceola Capital, has acquired Tempe, Arizona-based Clean D Windows, a commercial window cleaning and glass restoration company.

That’s all from me – Chris Witkowsky will be with you tomorrow for Wire Wednesday.

Cheers,

Craig

Read the full wire commentary on PE Hub ...

Also of note (may require subscriptions)

TPG, which struck a deal to buy Angelo Gordon, expects fundraising headwinds to impede its ability to meet targets across a range of flagships. (Buyouts)

KKR has eclipsed $2 billion in its fundraising efforts for its first dedicated fund targeting North American mid-market companies. (Buyouts)

The Institutional Investors Group on Climate Change has incorporated stakeholder influence into its updated private equity-focused guidance on decarbonizing portfolio companies. (New Private Markets)

A study by HEC Paris finds that PE-backed ‘downturn deals’ over a 25-year period had a success rate of 65%. (Private Equity International)

The Los Angeles County Employees’ Retirement Association committed $275 million to two transition-focused private equity fund managers in its latest investment committee meeting, New Private Markets has learned.

Cambridge economist Dimitri Zenghelis, speaking at the Impact Investor Global Summit in London, said 'the conventional theory of portfolio diversification... gets challenged' by the energy transition and that investors should focus on “picking winners” rather than seeking diversification in their portfolios. (New Private Markets)

The Institutional Limited Partners Association is calling for continuation fund processes to be more deliberative and transparent in a new guidance document that it compiled partly to address “growing LP frustrations” over how the GP-led secondaries deals are handled. (Private Funds CFO)