White Mountains Insurance Group Ltd, the Bermudian-domiciled financial services holding company, has launched White Mountains Partners, a new, wholly owned business unit that will provide first institutional capital to family, founder and entrepreneur-owned businesses in the essential services, light industrial and specialty consumer sectors.

John J. Daly, a former founding member and principal of Alleghany Capital, has joined WM Partners as chief executive and managing partner.

White Mountains said the business will seek to establish majority positions in companies with $10 million to $50 million of earnings before interest, taxes, depreciation and amortisation, and intends to deploy up to $500 million of equity capital over time.

Manning Rountree, chief executive of White Mountains, said: "We are pleased to launch WM Partners, which will extend White Mountains' long-term, value-oriented approach into additional attractive sectors.

“We're thrilled to have a high-calibre leader like John at the helm of the new business unit. John has deep experience in sourcing, executing and managing control investments in private businesses within a public company setting."

Mr Daly said: "I am excited to join White Mountains, and I am focused on building long-term value for its shareholders.

“At WM Partners, we will help families, founders and entrepreneurs grow their businesses by delivering flexible capital, a proven value creation play book and a deep understanding and abiding respect for the unique qualities of their businesses."