Carbon Announces Significant Growth Equity Investment from FTV Capital

Company and Transaction Overview

Carbon Underwriting Limited ("Carbon") has announced a significant growth equity investment from FTV Capital ("FTV")

Founded in 2018, Carbon is a capital-light, UK-based, market-leading delegated authority underwriting specialist with its own Lloyd's Syndicate (S.4747) focused exclusively on this market

• From 2023-2026, Carbon has experienced an exceptional period of growth with premium increasing from £150mm to £471mm at market-leading loss ratios; a growth trajectory that demonstrates the value and further potential of Carbon's business model
• Carbon combines underwriting expertise with innovative technology to deliver tailored capacity solutions for its delegated partners

The investment will accelerate Carbon's growth in delegated authority underwriting by helping scale its market-leading data and analytics platform, Graphene, deepening Carbon's AI capabilities, and supporting expansion into new markets, including across the U.S.

• Carbon will continue to operate independently, led by its existing management team and built on the same culture, strategic focus and underwriting discipline that have driven its success to date

FTV Capital is a sector-focused growth equity investment firm that has raised more than $10.2bn to invest in innovative, high-growth companies across financial technology and services, vertical software, enterprise technology and services, and healthcare technology and services

• Founded in 1998, FTV has developed a highly differentiated and disciplined growth equity model, which leverages the firm's deep domain expertise and thematic investing approach to help portfolio companies accelerate growth
• FTV provides companies with access to its Global Partner Network®, a strategic group of more than 600 executives from many of the world's leading financial services firms, and FTV Propel®, an in-house team of operational leaders who deliver counsel and resources across a range of critical business functions
• FTV will bring differentiated value to Carbon, drawing on experience scaling financial technology businesses, its network of U.S. carriers and distribution partners, and FTV Propel®, helping Carbon build the team and capabilities required to support its next phase of growth

Howden Capital Markets & Advisory Role

HCMA acting as exclusive financial advisor to Carbon in its sale to FTV; key roles and responsibilities have included:

• Development, in conjunction with shareholders, of a tailored M&A strategy and marketing plan
• Targeted investor outreach and engagement
• Creation of marketing materials and financial model
• Managing a highly competitive and tight process, including coordination of all due diligence
• Assisting in the negotiation of key transaction terms and conditions, including driving an optimal valuation outcome for shareholders
• Providing objective advice and acting as a confidante to Carbon and Apiary throughout the process
• This transaction further solidifies HCMA's position as a market leader in Lloyd's and MGU capital markets transactions