Velocity Risk Underwriters LLC, the catastrophe-focused property and specialty insurance risks managing general agent founded by Bermudian-headquartered Nephila Capital, has been acquired by funds managed by Oaktree Capital Management LP.

Oaktree is a global investment manager specialising in alternative investments.

Nephila has retained a minority interest in Velocity Risk.

Founded in 2015 by Nephila and headquartered in Nashville, Tennessee, Velocity Risk provides insurance coverage to clients in catastrophe-exposed areas of the United States.

Since its inception, Velocity Risk said, it has been focused on providing best-in-class products and services in selected markets.

Phil Bowie, Velocity Risk’s CEO, said: “The launch of Velocity Risk was designed to disrupt the value chain between insurance and capital, through innovative underwriting and operational efficiency.

“We are thrilled to have received Oaktree’s support and believe we have the right investor in Oaktree to help us continue building out our business.”

Greg Share, managing director in Oaktree’s Global Opportunities Group, said: “Velocity Risk has established itself as a leading property-focused MGA through the quality of its management team, its strong underwriting results and its investment in enabling technologies.

“We are excited to partner with the company and support its track record of driving growth and delivering value for its stakeholders.”

Frank Majors, co-CEO of Nephila, said: “We’re delighted to be partnering with Oaktree and are confident they will help Velocity Risk continue to build on its past successes.

“We look forward to continuing to work with Velocity Risk through our ongoing minority shareholding.”

Nephila is a leading investment manager specialising in catastrophe and non-catastrophe specialty re/insurance, climate and weather risk.

The firm has been active in the insurance-linked securities markets since launching its first fund in 1998 and offers a broad range of investment products focusing on instruments such as insurance-linked securities, catastrophe bonds, insurance swaps, and private transactions across its robust platform.

Nephila has approximately $9.3 billion in assets under management as of November 1, 2021.

The company is headquartered in Bermuda, with offices in San Francisco, Nashville and London.