Hagerty secures $105m capital raise for car enthusiast initiatives
Hagerty, an automotive lifestyle brand and specialty insurance provider, has announced a successful capital raise of $105 million.
The funding comes from existing strategic investors, including State Farm, Markel Group, and the Hagerty family, and will be instrumental in supporting the company’s growth initiatives aimed at serving the car enthusiast community.
The capital infusion comprises $80 million of convertible preferred equity, which closed on June 23rd, 2023, and a $25 million commitment of long-term debt financing for Hagerty Reinsurance Limited.
Tom Gayner — Markel Group CEO said: “Hagerty is an important partner for our insurance business, and we are excited to see them further expand their insurance offerings by finding new and innovative ways to serve automotive enthusiasts.”
The funds will be used to enhance Hagerty’s offerings to its current members and attract new members within the thriving car enthusiast market. With approximately 33 million enthusiast vehicles in the United States, Hagerty aims to tap into this vast potential, driving significant growth in written premiums and operating profit. The capital raise will also enable Hagerty to invest in technology, improving operational efficiencies and enhancing customer interactions.
Alongside specialty vehicle insurance, Hagerty offers expert car valuation data, live and digital car auction services, immersive events, and engaging automotive entertainment. With this capital infusion, Hagerty is poised to expand its reach and solidify its position as a leader in the automotive industry, catering to the needs of passionate car enthusiasts.
McKeel Hagerty — Hagerty CEO said: McKeel Hagerty said: “We have been working diligently over the last six months to deliver improved profitability and margin expansion, while making the investments necessary to sustain our growth trajectory for many years to come.
“We believe that the additional capital positions us well during uncertain economic times to execute against our significant growth opportunities.”