Houlihan Lokey Advises Trean Insurance Group

Houlihan Lokey is pleased to announce that Trean Insurance Group, Inc. (Trean) completed its sale to funds managed by Altaris, LLC (collectively with its affiliates, “Altaris”) for $6.15 per share in cash. The transaction was announced on December 16, 2022, and closed on April 21, 2023.

Trean (NASDAQ:TIG) is a leading provider of products and services to the specialty insurance market. Headquartered in Wayzata, Minnesota, Trean underwrites workers’ compensation and specialty casualty insurance products both through its program partners and its own managing general agencies. The company also provides its program partners with a variety of services, including issuing carrier services, claims administration, and reinsurance brokerage. Trean is licensed to write business across 49 states and in the District of Columbia.

Altaris is a healthcare investment firm with an exclusive focus on building companies that deliver value to the healthcare system through innovation and efficiency. Since inception in 2003, Altaris has invested in 49 healthcare companies, which have generated significant value appreciation for investors. Altaris is headquartered in New York City and manages approximately $5.0 billion of equity capital.

At the time of announcement, Altaris owned approximately 47% of Trean’s outstanding common stock. The $6.15-per-share cash acquisition price represented a 133% premium to the 30-day, volume-weighted average price per share of $2.64 as of December 15, 2022, and implied a total equity value for the company of approximately $316 million.

Houlihan Lokey served as the independent financial advisor to the special committee of the board of directors of Trean and rendered a fairness opinion in connection with the transaction.