JACKSONVILLE, Fla., Feb. 8, 2021 /PRNewswire/ — Independent Insurance Group LLC (“Independent Group”) announced today the signing of a definitive agreement for an investment by Kilter Finance, an insurance-focused specialty finance company backed by KKR.
Launched in 2018, Independent Group is the parent of Independent Life Insurance Company (“Independent Life”), the first insurance carrier to focus exclusively on the primary issuance of structured settlement annuities with the mission of helping personal injury victims and their families meet their financial needs over their lifetimes.
“We are thrilled to join forces with Kilter Finance,” shared Michael Upchurch, Chairman and CEO of Independent Group. “Given their financial and insurance acumen, they quickly understood our business model, appreciated the uniqueness of what we have created and bought into our passion for structured settlements. We couldn’t ask for a better partner to join us in our efforts to bring positive change, innovation and growth to our industry for the benefit of our brokers and payees.”
Kilter Finance will invest up to $89 million into Independent Group. Combined with a simultaneous investment at close by management and LKCM Headwater Investments (“LKCM-Headwater”), Independent Group’s founding private equity partner, the transaction will result in a total capital raise of up to $114 million.
“We plan to devote the majority of the funding from Kilter Finance to Independent Life, further increasing the financial security we provide to our customers,” commented George Luecke, President and Chief Strategy Officer of Independent Group. “We will deploy the remainder toward general corporate purposes and the acceleration of key strategic initiatives that are underway, including product development, technology enhancements and potential acquisitions, in keeping with our ongoing efforts to deliver quality products and services to the markets we serve.”
Kilter Finance provides flexible and innovative financing solutions to the insurance sector on a global basis. Dan Knipe, Chief Investment Officer of Kilter Finance, said, “We have been impressed by the business that the Independent Group management team has built and are excited to join LKCM-Headwater and management as a key capital provider to fuel the next phase of their growth.”
Charles Lens, Managing Director of Kilter Finance, added, “We salute the mission of the structured settlement industry and the leadership exhibited by the Independent Group management team. This opportunity has enabled Kilter Finance to invest into a platform company that we expect will positively impact the structured settlement industry for decades to come.”
Further details of the transaction were not disclosed. The transaction remains subject to customary closing conditions. Houlihan Lokey Capital, Inc. acted as exclusive financial advisor and Willkie Farr & Gallagher LLP served as legal counsel to Independent Group in the transaction. Debevoise & Plimpton LLP acted as legal counsel to Kilter Finance in the transaction.
ABOUT INDEPENDENT INSURANCE GROUP
Independent Life, Independent Insurance Group’s life and annuity subsidiary, is the first insurance company to focus exclusively on structured settlements. Independent Insurance Group’s goal is to provide competitive and innovative annuity products and services that professional consultants can efficiently integrate into their settlement planning solutions, for the long-term protection of personal injury victims and their families. Among other significant achievements since its formation, Independent Life was recognized as the second fastest growing life and annuity insurance company in 2019 by S&P Global Market Intelligence1. For additional information on Independent Life, please visit www.independent.life.
ABOUT KILTER FINANCE
Kilter Finance is an insurance-focused specialty finance company established as a joint venture between its management team, led by Dan Knipe, and leading global investment firm KKR. KKR, through its credit business, has made an initial commitment of up to $500 million, to be injected onto Kilter Finance’s balance sheet. This capital can be deployed across the capital structure of its investee companies.
As a permanent capital vehicle, Kilter Finance is first and foremost a solutions-led business, providing flexible, bespoke capital solutions to its clients with flexibility to invest across the capital structure. It is collateral, structure, territory, currency and tenor agnostic. The Kilter Finance management team are specialists in the insurance and asset management sectors. For additional details, please visit www.kilterfinance.com.
ABOUT LKCM HEADWATER INVESTMENTS
LKCM Headwater Investments is a Texas-based private equity firm that partners with management teams to build highly successful companies. LKCM Headwater Investments is affiliated with Luther King Capital Management, an SEC-registered investment firm established in 1979 with approximately $21.6 billion of assets under management as of December 31, 2020. LKCM’s proven investment discipline centers on a long-term focus of investing in well-managed companies that demonstrate an ability to re-invest cash flows into high return investment opportunities.