Praesidian Capital Investors, a New York provider of debt to middle-market companies, said Tuesday that it had committed itself to an $8.85 million investment in RAI Insurance Agency LLC, an administrative and insurance brokerage company. The proceeds of Praesidian's investment, which is to be made in three installments during the 12 months after the deal closes this quarter, are to be used to fund organic growth.
RAI Insurance is one of three parts of RAI Insurance Group LLC in Anaheim, Calif.; it was formed to originate and manage life insurance policies, finance premiums and loan accounts, and sell specific premium-financed policies into the secondary market. RAI targets senior citizens and their trusts. It benefits from commissions, interest and fees, and the sale of policies into the secondary market.
Since February 2005, Praesidian Capital has established a strategy of partnerships with co-investors and supplying capital to historically profitable middle-market companies.
It has closed nine investments since then, including two in the insurance business. Praesidian supported the management buyout last April of BenefitPort MidAtlantic, a provider of technology-based solutions for the group insurance and employee benefits industry.
