Private equity firm Stone Point Capital manages the Trident Funds, which are invested in a variety of insurance and financial services companies. The company seeks a controlling or substantial minority stake in banks, specialty lenders, mortgage service companies, asset managers, insurance underwriters and distributors, employee benefits and health care providers, and firms that perform outsourced services for financial institutions. It targets startups, corporate divestitures and restructurings, partnerships with business owners, distressed assets, and special situations.
Stone Point Capital, which typically invests between $50 million and $400 million per transaction, has raised more than $9 billion in committed capital. It is investing from its fifth fund, Trident V, which closed in early 2011 with some $3.5 billion. The company has interests in about 40 firms, including Automobile Protection Corporation, AXIS Capital Holdings, Cunningham Lindsey, and Wilton Re.
Stone Point Capital used some of the funds from Trident V to establish new companies, including high-yield investment manager SKY Harbor Capital, energy and power trading firm Freepoint Commodities, and specialty commercial finance company Access Point, which focuses on the hospitality industry. Other transactions during 2011 included the acquisitions of stakes in insurance distributor ARC Group, customer service provider C3, and Prima Capital Advisors, which specializes in commercial mortgage investments.
Stone Point Capital has been building its banking holdings in the wake of the credit meltdown. It formed AloStar Bank of Commerce from the assets of the failed Nexity Bank, which was closed by regulators in 2011. Stone Point Capital also invested in NCBF, a bank holding company formed by Florida banking veterans to build a community banking franchise along the state's eastern coast. Those deals followed the 2010 launches of California-based Grandpoint Bank and Carlisle Bancshares in Texas, and the 2009 acquisition of OneWest Bank, which was formed from the assets acquired from the failed IndyMac Bank.
Along with Hellman & Friedman, Stone Point Capital acquired Sedgwick Claims Management in 2010 from an investment group that included Fidelity National Financial. The firms paid approximately $1.1 billion for Sedgwick, which provides insurance claims administration services for corporate and institutional customers. Stone Point Capital also invested in newly formed commercial lender NXT Capital that year.
Stone Point was took its current form in 2005 when Marsh & McLennan spun off its private equity business, formerly MMC Capital, to the unit's principals. – less