British venture capital firm Beat Capital Partners is set to merge with insurance investment vehicle Paraline UK.
The move is part of Beat’s efforts to enhance and further build its platform to support independent underwriting businesses.
As part of the deal, Bermuda-based insurance holding firm Paraline Group will join Neon Holdings as a strategic investment partner of Beat.
In addition, the £110m Asta-managed Paraline Syndicate 4242 at Lloyd’s will be renamed Beat Syndicate 4242.
ICAT Managers will continue its strategic underwriting relationship with s.4242.
Beat co-founder Tom Milligan said “Beat has grown rapidly since its formation in 2017. This deal gives us access to a second Lloyd’s platform alongside Neon 2468 that benefits our existing investee companies and enhances our offering to proven lead underwriters who have the ambition to build their own business.
“We are delighted to partner with Paraline, who have a track record of successful insurance investment.”
Following the transaction, which is subject to regulatory approval, Bruce Schnitzer and John Struck will join Beat’s board of directors. The board will be chaired by John Cavanagh.
In addition, the firm’s director Paul Rayner will become chief financial officer of Beat.
Beat currently has two investments including cyber insurance specialist Tarian and specialty reinsurance underwriter Chord Re. Neon Syndicate 2468 leads underwriting support for both the facilities.