12/13/10
Clarion Capital Partners Completes $90 Million Sale of Crowe Paradis Services Corporation to Verisk Analytics Clarion Capital Partners Completes $90 Million Sale of Crowe Paradis Services Corporation to Verisk Analytics
New York, December 13, 2010 – Clarion Capital Partners, a New York-based middle market private equity firm, announced today that it has completed the previously announced sale of Crowe Paradis Services Corporation, a premier provider of claims analysis and compliance solutions to the property and casualty insurance industry, to Verisk Analytics, a leading source of information about risk, for approximately $90 million.
Founded in 2002 by Michael Crowe and Kenneth Paradis, Crowe Paradis provides Medicare Secondary Payer Act (“MSP”) compliance solutions to the nation’s largest property and casualty insurance companies, third-party administrators and self-insured organizations. Clarion Capital Partners invested in Crowe Paradis in October 2006 as part of the firm’s strategy to pursue compelling growth investments in emerging industries, such as the growing MSP compliance services field.
“During our partnership, Crowe Paradis has grown from a small, high quality provider of Medicare set aside accounts to an industry leading, full spectrum MSP compliance firm,” said Eric Kogan, a Partner at Clarion. “Crowe Paradis’s emergence as a leader in the industry is due to the company’s strong management team, preeminent technology and intellectual capital. We wish all of its employees continued success as they join the Verisk group of companies.”
“Our relationship with Crowe Paradis was a true partnership at every level and we are thrilled with the company’s performance. The company has expanded its employee base from 6 employees at inception to over 130 today and has demonstrated dramatic revenue growth over the course of our relationship,” said Marc Utay, Clarion’s Managing Partner. “This investment is illustrative of Clarion’s approach to investing which has been extremely successful for our limited partners.”
“We have greatly enjoyed our successful collaboration with Clarion Capital Partners over the last four years”, added Kenneth Paradis, Crowe Paradis’s Chief Executive Officer. “Clarion provided valuable strategic insights, operational support and business development knowledge during our formative years. We are also excited and honored to join the Verisk family. We believe that our new partners will be invaluable in every aspect of our ongoing mission to exceed our clients’ expectations.”
Crowe Paradis was advised on the transaction by Lazard Middle Market and Paul, Weiss, Rifkind, Wharton & Garrison LLP. Choate, Hall & Stewart LLP advised certain minority shareholders of Crowe Paradis.
About Crowe Paradis Services Corporation
Crowe Paradis Services Corporation (CPSC) is the nation’s leading Medicare compliance firm. By leveraging legal, clinical and technological expertise, CPSC provides insurers, third-party administrators and employers with a suite of products and services to meet their Medicare compliance needs. Headquartered in North Reading, Mass., with offices throughout North America, more information about Crowe Paradis Services Corporation can be found at www.cpscmsa.com or by calling 1-866-630-2772.
About Clarion
Founded in 1999, Clarion is a New York-based investment manager operating two primary business segments: Private Equity (launched in 1999) and Structured Credit (launched in 2018). Clarion’s private equity business seeks to make primarily control investments in a diversified portfolio of lower middle-market companies generating $7.5-30.0 million of EBITDA. Clarion focuses on growth companies in industries such as: Media, Entertainment & Technology; Financial Technology & Services; Business, Healthcare & Industrial Services; and Consumer. Clarion’s structured credit business focuses mostly on CLO equity and mezzanine investments, sourced both in the primary and secondary markets. The structured credit team manages traditional private funds and an insurance-dedicated fund. Additional information on Clarion can be found at www.clarion-capital.com.
About Verisk Analytics
Verisk Analytics (Nasdaq:VRSK) is a leading provider of information about risk to professionals in insurance, healthcare, mortgage, government, and risk management. Using advanced technologies to collect and analyze billions of records, Verisk Analytics draws on vast industry expertise and unique proprietary data sets to provide predictive analytics and decision-support solutions in fraud prevention, actuarial science, insurance coverages, fire protection, catastrophe and weather risk, data management, and many other fields. In the United States and around the world, Verisk Analytics helps customers protect people, property, and financial assets. For more information, visit www.verisk.com.