Praesidian News
Media Contact: Dan Jacobs
Broadgate Consultants LLC
Phone: 212-232-2222
Praesidian Capital to Fund Growth
of Leading Insurance Brokerage
RAI Insurance Agency Represents Second Investment In Insurance
Sector For Leading Mezzanine Firm
NEW YORK — April 04, 2006 — Praesidian Capital
Investors, a provider of mezzanine debt to middle market companies,
has completed a commitment to invest $8,850,000 in RAI Insurance
Agency LLC ("RAI" or the "Company"), an
administrative and insurance brokerage company providing a
variety of services for clients with life insurance policies.
The proceeds of Praesidian’s investment, which is being
made in three tranches during the first twelve months post-close,
will be used to drive organic growth.
RAI is one of three parts of RAI Insurance Group LLC and
was formed to originate and manage life insurance policies,
finance premiums and loan accounts, and sell specific premium-financed
policies into the secondary market. RAI targets a market of
senior citizens and their trusts. The Company benefits from
commissions, interest and fees, and the sale of certain policies
into the secondary market.
"Our investment in RAI gives the company the right capital
structure to take advantage of favorable industry trends,"
said Neil Marks, Managing Partner at Praesidian. "With
a skilled management team led by Chief Operating Officer Bette
Gandelman, we are confident in RAI’s future."
"With Praesidian's understanding of the insurance industry,
the firm’s investment will give RAI the financial and
strategic resources needed to take our business to the next
level," said Ms. Gandelman. "Praesidian’s commitment
to work collaboratively with our team makes them a perfect
partner."
Since the close of its debut fund in February of 2005 on
$157 million, Praesidian Capital has established a strategy
of partnering with strong co-investors and providing mezzanine
capital to historically profitable middle market companies
with talented management teams. The firm has closed nine investments
since its inception, including two in the insurance category.
Praesidian supported the management buyout of BenefitPort
MidAtlantic, the leading provider of technology-based solutions
for the group insurance and employee benefits industry, in
April of 2005.
About Praesidian Capital
Praesidian provides mezzanine debt to middle market companies.
The firm provides capital for established, historically profitable
companies, as well as for management/leveraged buyouts, recapitalizations
and refinancings. Investments are focused on successful businesses
in the manufacturing, distribution and service sectors, although
the firm’s approach is not driven by an industry focus.
For more information, visit www.praesidian.com.
About RAI Insurance Agency LLC
RAI Insurance Agency LLC provides administrative support and
brokerage for the RAI Insurance Group including the placement,
underwriting and qualification of new policies, medical examinations
for the potentially insured, application and communications
with Insurance providers, loan accounting, sales of "matured"
policies into the "Life Settlement" policy market,
and cash management.
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