Investment Opportunities

We seek to make investments in the following sectors of financial services:

  • Banks and depository institutions
  • Outsourcing service providers to financial institutions
  • Specialty lending and other credit opportunities
  • Mortgage services
  • Asset management
  • Insurance and reinsurance underwriting
  • Insurance distribution
  • Employee benefits and healthcare

Through the Elephant Process, Stone Point focuses on identifying, developing relationships with and, eventually, partnering with the leading management teams in the various sectors that we have identified as potentially attractive for investment. These investments are often made in the context of the following situations:

  • Market Dislocations and Supply and Demand Imbalances
  • Corporate Divestitures and Restructurings
  • Partnerships with Owner-Operators
  • Start-ups Built Around Leading Managers
  • Distressed Assets and Run-off
  • Special Situations

Market Dislocations and Supply and Demand Imbalances. Stone Point has made more than forty investments to take advantage of market dislocations and imbalances of supply and demand in industries including commercial banking, mortgage services, commercial finance, excess casualty insurance, property casualty insurance and reinsurance, workers’ compensation insurance, life reinsurance and insurance distribution.

Corporate Divestitures and Restructurings. The restructuring or disposition of a division or subsidiary by a large financial services company may result in an opportunity to invest in a strong operating platform at an attractive valuation. Stone Point has made more than a dozen investments in such circumstances.

Partnerships with Owner-Operators. Stone Point has been the preferred partner to owner-operators in numerous investments, in many cases making minority investments and significantly increasing the value of the businesses through introductions to customers, management team members and directors.

Start-ups Built Around Leading Managers. Stone Point has made more than thirty-five investments in start-up financial services businesses. These investments have been made in circumstances where we have partnered with an outstanding management team and in which we believe that the growth or flux of the targeted sector is sufficient to support the entry of a new competitor; existing players are excessively valued or face significant challenges; and a start-up company can reach scale quickly and break-even within one or two years.

Distressed Assets and Run-off. In situations where it is commercially impractical to attempt to save a failing company or to continue supporting a particular line of business, there may be opportunities to make an investment in connection with the run-off of the company or book of business. Stone Point has significant experience investing in the specialized firms that perform this function.

Special Situations. We seek to use our knowledge of the market and our industry contacts to secure attractive investment opportunities in other special situations, including privatizations, public offerings and other specialty financings where sponsors seek to involve an experienced, validating investor.