Bernhard Capital Partners Management, a services and infrastructure-focused private equity management firm, and The Gray Insurance Company today announced that a group of investors led by Bernhard Capital Partners has made a significant investment in The Gray Casualty & Surety Company, Gray Insurance’s surety market affiliate.
“We are proud of this partnership and excited about the growth potential it holds. This venture is well positioned as a pure-play surety company and will enable Gray Surety to write and support a much larger share of the market. Bernhard Capital Partner’s interest in Gray Surety is a testament to the successful business the Gray team has built and we thank each individual for their efforts.”
-Michael T. Gray, Chief Executive Officer and President of Gray Insurance
“This partnership brings together Bernhard Capital Partner’s construction and infrastructure expertise with our construction focused credit business. Bernhard Capital Partner’s substantial capital infusion represents an incredible opportunity to expand our capacity and we look forward to growing our business as we support our customers in a rapidly changing industry. At Gray Surety, our motto is 'Let's Get To Yes’ which reflects our creative approach to surety credit, but also impacts all levels of our operations. We will continue to provide the same exceptional level of care, professionalism, and unique service-first approach to the surety bond experience.”
-Cullen S. Piske, President of Gray Surety
“We are excited to partner with the Gray Surety team. This insurance platform will serve as a natural extension of our construction and infrastructure expertise. Together, we will leverage Gray Surety's reputation in the surety industry and Bernhard Capital Partner’s resources to grow capacity. The Gray Surety team’s proven reputation and strong track record in the surety industry reflects their dedication to their key values – values that align closely with ours at Bernhard Capital Partners. We are proud to support their growth and welcome them to our portfolio.”
-Jim Bernhard, Partner at Bernhard Capital
Frequently Asked Questions
- What does the announcement mean? This partnership will merge Bernhard Capital Partner’s construction and infrastructure expertise with the construction-focused credit business that is Gray Surety.
- Why has Bernhard Capital Partners entered into an agreement to merge with Gray Surety? This merger will allow major growth to Gray Surety, allowing us to support a national rather than regional share of the market.
- What does this mean for Gray Surety clients? Current management will continue to operate Gray Surety, meaning we will continue to provide the same exceptional services to the surety bond experience.
- How will the merger contribute to the corporate direction? Our partnership with Bernhard Capital Partners will allow Gray Surety to take our business to the next level, expanding our corporate direction to a national audience.
- Will Gray Surety be changing its name? Our team, professional brand, and services will stay the same. We will be able to increase our resources to support today's emerging and mid-sized contractors in a rapidly changing industry
- What happens between now and close? What type of interaction will Gray Surety clients have with Bernhard Capital Partners prior to the close of the transaction, which will occur shortly after obtaining requisite regulatory approval? Gray Surety will continue to operate under current management, meaning current clients will see no change prior to the close of the transaction
- What can stakeholders expect to see from the merged enterprise in the future? Our merger will create a mono-line surety platform with increased capacity and market scope.
- What type of interaction will Gray Surety’s existing clients have with Bernhard Capital Partners after the close? Gray Surety will continue to operate under current management, even after the transaction comes to a close. This means clients will see no change in their day-to-day business with Gray Surety.
- What opportunities will this afford Gray Surety clients? With our combined resources we have an incredible opportunity to expand our capacity of bonds that we can issue.