Velocity Announces Strategic Sale of Velocity Specialty Insurance Company; Oaktree to Fully Exit

Core Insights - Velocity HoldCo, LLC has completed the sale of Velocity Specialty Insurance Company (VSIC) to FM, marking a full exit of Oaktree Capital Management's interests in Velocity through a transformative three-way transaction [1][2] Company Overview - Velocity is the former holding company for Velocity Risk Underwriters, LLC (VRU) and VSIC, which is an AM Best rated E&S insurance carrier licensed in all 50 states [4] - Under Oaktree's management, Velocity has transformed into a hybrid managing general underwriter, enhancing its operational capabilities and product innovation [2][4] Transaction Details - The sale of VSIC follows the earlier sale of VRU to Ryan Specialty, indicating a strategic move to consolidate Velocity's operations and enhance its market position [1][2] - Oaktree's partnership has been pivotal in Velocity's growth, leading to significant milestones and market-leading underwriting results [2][3] Leadership Commentary - Oaktree Managing Director Greg Share expressed confidence in Velocity's future success post-transaction, highlighting the remarkable growth achieved under Oaktree's ownership [3] - VRU's CEO Jake Rothfuss acknowledged Oaktree's invaluable guidance and support, emphasizing a commitment to operational excellence and expansion with Ryan Specialty [3] - Phil Bowie, Chairman of VRU and CEO of VSIC, noted the importance of Oaktree's support in Velocity's growth and the potential for enhanced underwriting capabilities with FM [3] Industry Context - Oaktree has successfully executed a series of insurance investments, showcasing its ability to drive transformational value creation in corporate carve-outs [3][5] - As of December 31, 2024, Oaktree manages $202 billion in assets, focusing on alternative investments with a value-oriented approach [5]