Trucordia Gains $1.3B Investment From Carlyle to Propel Growth

Trucordia today announced it will receive a $1.3 billion strategic investment from global investment firm Carlyle’s Global Credit platform.

The investment values Trucordia at $5.6 billion, and it will reduce the company’s debt relative to equity while simplifying its governance structure by repurchasing units from existing minority investors.

Carlyle’s “continued interest and investment in us, from a strategic standpoint, really gives us the ability to mature as an organization and drive initiatives,” said Felix Morgan, CEO of Trucordia, in an interview with Insurance Journal.

The transaction, expected to close this month, is looked at to improve Trucordia’s position from a leverage standpoint, giving it long-term financial flexibility to achieve it’s “Ascend” strategy.

“We’ve really had great capital partners in the past who have done great things for us,” Morgan continued to explain to IJ. However, the Lindon, Utah-based company “has grown so fast, we quickly outgrew capital base.”

Growth in recent history came rapidly by way of acquisitions. The company will continue strategic M&A efforts but, as part of the Ascend strategy, Trucordia has “aspirational targets of double-digit organic growth,” Morgan said. Though it has achieved size and scale with acquisition volume, M&A is now “really about how we drive value into the organization,” he said. Integration has become a focus — making numerous organizations one company. The rebranding was a big step toward this goal.

“We’ve done a lot of technology—infrastructure building—and we continue to look at ways that we can be more efficient,” Morgan said. “I see Carlyle being a partner with us in that.”

The investment firm has a “wealth of resources” to tap, including technology experts and strategic advisors, Morgan continued.

“[Carlyle] has a good respect that this an employee-owned company, and they’ve put themselves in a position to provide great support for it,” he said.