A group of investors led by Bernhard Capital Partners Management has entered into an agreement to make a “significant investment” in The Gray Casualty & Surety Company, a surety carrier headquartered in Metairie.
Terms of the transaction were not disclosed.
Through the deal, BCP will leverage its resources to grow capacity for Gray, which provides surety bonds to emerging and mid-market contractors, partners with professional bond agents to provide bond options across the U.S. and underwrites commercial bonds related to licenses, permits and other regulatory requirements.
In a prepared statement, BCP founder Jim Berhnard says Gray’s insurance platform will serve as “a natural extension of [BCP’s] construction and infrastructure expertise.”
Meanwhile, Michael Gray, CEO and president of Gray Insurance, which owns the surety company, says he is excited about the growth potential the partnership with BCP 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,” Gray says in another prepared statement.
Current management will continue to operate Gray Surety. The company has offices in Louisiana, Texas, Mississippi, Alabama and Arizona, all of which BCP will add to its portfolio.