Austin Ventures and Bob Carter, who is the co-founder of National Financial Partners, formed a life insurance distribution company. Austin Ventures invested $5 million and committed another $45 million in support of the newly created business that will provide exclusive ownership opportunities for the nation’s leading independent insurance producers.
Austin Ventures, one of the nation’s leading growth equity firms, announced today that it has formed a life insurance distribution company with Bob Carter, co-founder of National Financial Partners (NYSE). This new company will provide exclusive ownership opportunities for the nation’s leading independent insurance producers. AV has invested $5 million and committed another $45 million in support of Mr. Carter’s vision of the next great success story in life insurance distribution.
“We are building a company based on the collective strength of independent, elite life insurances practices. When they band together for a common business purpose, their intellect and creativity combined with a strategic financial partner creates unlimited opportunity,” said Mr. Carter. “We will improve upon previous models, attract the best people, and create a financial distribution company exclusive to the nation’s top agents, strongest insurance companies, and most innovative service providers.”
The new company will have limited availability for independent life insurance firms with annual production in excess of a million dollars a year. These elite agents will be owners of the new company receiving economic rewards and a voice in the operational and strategic direction of the company. Additionally, these producers will benefit from the best resources and a collaborative culture along with direct access to the leading insurance carriers dedicated to the high-end marketplace. Mr. Carter has already assembled a strong group of prominent individuals at the company to provide support to these top-tier independent firms.
“We are excited about partnering with Bob to build a unique and innovative financial products distribution company serving the needs of strong, independent life insurance producers,” said Michael Rovner, a Partner at Austin Ventures. “Bob’s track record of success in the insurance industry speaks for itself and this investment builds on Austin Ventures’ commitment to work alongside talented executives in high-growth financial services companies.”
Prior to forming this new company, Mr. Carter was the co-founder of National Financial Partners (NYSE). Prior to co-founding NFP, he was the co-founder of PartnersFinancial, one of the first member-owned life insurance distribution platforms for elite agents operating in the high net worth estate and business planning market. Mr. Carter has served on numerous industry boards including the International Forum and is the immediate past-President of the Association for Advanced Life Underwriting.
The new company will be based in Austin, Texas, and will develop owner firms in all major markets.
About Austin Ventures
Austin Ventures (“AV”) has worked with talented entrepreneurs to build valuable companies for over twenty-five years. With $3.9 billion under management, AV is the most active venture capital and growth equity firm in Texas and one of the most established in the nation. With an investment focus on business services and supply chain, financial services, new media, Internet and information services, software, and Texas special situations, AV invests at all stages of company development, from $100,000 in “planned experiments” in early stage ideas to $100+ million investments in expansion rounds, minority recapitalizations, and buyouts of lower middle market growth companies. AV’s strategy is to partner with talented executives and entrepreneurs through its CEO-in-Residence and Entrepreneur-in-Residence programs. Visit austinventures.com for more information.
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