Vericity Case Study
Vericity
Vericity provides life insurance protection targeted to the middle American market.
Investment Thesis:
- Attractive acquisition valuation with significant and early return of capital
- Attractive asset to strategics and potential upside from the agency business
- Access to the middle market. Sales contacts made through Efinancial’s call centers focused on the middle market, differentiating Vericity from the broader life insurance industry, which typically targets a more affluent clientele
- Patented products and efficient processes distinguished Vericity within the industry where the underwriting process typically extends well beyond the initial interaction
- Strong and highly aligned management team
Value Add:
- Technology revamps in various areas such as doubling technology spend and recruiting third-party consultants through the JCF network, hiring a Chief Data and Technology Officer, creating a new cloud-based platform, and drove predictive analytic advancements
- Marketing overhaul
- Pushed for organizational accountability and efficiency, particularly after COVID mortality losses
- Supported management through unforeseen challenges
Key Details
Location:
Chicago, Illinois
Fund:
JCF IV
Subsector:
Insurance
Investment Date:
August 2019
Realization:
June 2024
Chi-X Case Study
Chi-X
Chi-X Asia is a leading global provider of alternative trading venues, a fast-growing trading exchange operator and a technology provider with current operations in Australia, Japan and Hong Kong.
Investment Thesis:
- There were limited challengers in-market for Australia and Japan
- Targeted large, underpenetrated markets resulting in growth opportunities
- Efficient, globally tested trading technology platform
- Undermanaged asset under previous ownership; turnaround effort required; JCF had experience and an established network in the Asia-Pacific region
- Assets have strategic value to exchange operators with global ambitions
Value Add:
- Helped Chi-X compete more effectively with the incumbent exchanges
- Recruited well-respected industry veterans and instituted strong governance with JCF executives and independent outside directors
- Replatformed Chi-X technology and operations centers to improve efficiency and profitability
- Leveraged JCF experience and relationships to help raise market standards and product innovation
Key Details
Location:
Japan / Australia / Hong Kong
Fund:
JCF III
Subsector:
Capital Markets, Payments & Software
Investment Date:
February 2016
Realization:
June 2021
FirstBank Case Study
FirstBank
First Bank is a Romanian universal bank operating a nationwide branch network with a large deposit base lending across all customer segments (retail, SME and corporate).
Investment Thesis:
- The acquisition price consisted of a discount to tangible book value
- A positive macroeconomic backdrop with Romania as the third-largest economy in CEE and the fastest growing economy in the European Union at the time of entry
- An opportunity to transform and modernize the bank under the leadership of an experienced and motivated management team
- The highly fragmented Romanian banking market presented consolidation opportunities for value creation and exit opportunities
Value Add:
- Built a best-in-class team and culture during a period of significant change and upheaval
- Created scale through M&A. Completed the Leumi add-on
- Overhauled core systems and process changes through extensive development in technology and leaning into a slimmed-down structure
- Finalized cleanup of legacy portfolio, built local risk management functionality (previously run out of foreign parent HQ), cleaned up data storage and systems to streamline reporting
Key Details
Location:
Bucharest, Romania
Fund:
JCF IV
Subsector:
Banks
Investment Date:
June 2018
Realization:
October 2023
Fairstone Case Study
Fairstone
Fairstone Financial Inc is a non-bank consumer finance company in Canada that provides unsecured and secured personal loans, retail sales finance, mortgages and other ancillary products primarily to near-prime customers across all 10 provinces and two territories in Canada.
Investment Thesis:
- Canadian market leader with a dominant market share in non-prime lending and ~300,000 strong customer base
- Desirable unit economics with strong yields and moderate charge-offs
- Attractive valuation for a market leader
- Solid team with deep market and operational capability, but with significant carve-out revenue and expense opportunities
Value Add:
- Fairstone benefited from JCF’s long-term relationship with a local bank that provided attractive comprehensive financing commitment
- Technology overhaul of existing infrastructure
- JCF led an independent capital structure at closing and significantly improved funding cost and structure thereafter, with securitization program and an unsecured bond
- Transformed marketing into a robust digital marketing capability
- Expanded e-commerce financing and retail point-of-sale financing
Key Details
Location:
Montreal, Canada
Fund:
JCF IV
Subsector:
Specialty Finance
Investment Date:
March 2017
Realization:
January 2021
Interactive Investor Case Study
Interactive Investor
Interactive Investor Ltd is the second largest online direct-to-retail investment platform in the United Kingdom. Interactive offers a wide range of online investment solutions.
Investment Thesis:
- High organic growth potential through scale and leadership in the digital wealth management sector, driven by technology and data investment combined with new product initiatives
- Sector in need of consolidation with platform combination presenting opportunities for 90%+ cost savings
- M&A opportunities through corporate and book acquisitions presented upside potential
- Acquisitions came with surplus capital available for release following the completion of successful migration and extraction of cost synergies
Value Add:
- Created a robust technology platform that enabled hyper-efficient operations and supported new product initiatives.
- Drove significant leadership change
- Focus on technology data, digital marketing, editorial content and control functions
- Fully transformed “Fintech 2.0″ business with brand positioned as the consumer champion for D2C self-directed wealth management
Key Details
Location:
Manchester, U.K.
Fund:
JCF IV
Subsector:
Wealth Management
Investment Date:
May 2017
Realization:
May 2022
Amerilife Case Study
Amerilife
AmeriLife Group is the largest independent distribution organization of life and health insurance products serving the growing pre-retiree and retiree markets.
Investment Thesis:
- Market leader in the distribution of high-growth senior medical products
- A fragmented industry that was in an early stage of consolidation
- High margin, high recurring revenue, diversified by customer, supplier, and product
- Undermanaged business
Value Add:
- Recruited CEO, who JCF believes made a significant impact at AmeriLife
- Supported AmeriLife’s M&A initiatives. AmeriLife completed five acquisitions during JCF’s investment.
- Encouraged and supported new management team initiatives to promote growth and talent development
- Implemented a new agent interface technology, which enabled moving many functions online, including agent contracting and customer applications.
Key Details
Location:
Clearwater, Florida
Fund:
JCF III
Subsector:
Business and Insurance Services
Investment Date:
July 2015
Realization:
March 2020