#United States #Baton Rouge #BCP #Gray Surety Company #Palomar Holdings

BCP Concludes Sale of The Gray Surety Company

On February 2, 2026, BCP, a private equity management firm dedicated to services and infrastructure, proudly announced the completion of the sale of The Gray Casualty & Surety Company (commonly referred to as Gray Surety) to Palomar Holdings, Inc. (NASDAQ: PLMR). This sale represents a significant stepping stone in BCP’s investment strategy that has been focused on creating value through successful partnerships and transformations in their portfolio companies.

A Brief History of BCP and Gray Surety

In 2021, BCP made a substantial investment in Gray Surety to tap into the niche market of contract bonds aimed at mid-sized and emerging contractors throughout the United States. With its roots tracing back to 1996, Gray Surety, as a subsidiary of The Gray Insurance Company, has firmly established itself as a top 50 surety carrier, providing services across all 50 states from its 13 regional offices.

The team at Gray Surety, led by a seasoned and entrepreneurial management, has effectively built a reputation as a dependable surety partner for contractors, resulting in robust growth and increased market presence since BCP's involvement. Jeff Koonce, a partner at BCP, expressed pride in the outcomes generated during their partnership, stating, “Gray Surety has delivered significant growth, expanded its national presence, and deepened its reputation.”

The Importance of the Sale

The completion of this sale marks the third exit for BCP in the latter half of 2025 alone. Prior to Gray Surety’s acquisition, BCP successfully sold Brown & Root Industrial Services in October 2025 and anticipates finalizing the sale of United Utility in the first quarter of this year. Each transaction underlines BCP’s commitment to refining its portfolio and pursuing high-potential opportunities for its investors.

Cullen Piske, President of Gray Surety, articulated the mutual benefits realized from BCP's partnership, noting that the operational approach enabled significant operational scaling and enabled further expansion into new markets. “We are excited to build on that momentum going forward with Palomar,” he noted, indicating optimism for the new chapter ahead.

Financial Advisors and Legal Counsel

J.P. Morgan served as the exclusive financial advisor for Gray Surety during this transaction, with Kirkland & Ellis LLP providing legal counsel. On the other hand, Evercore acted as the exclusive financial advisor for Palomar, while DLA Piper LLP (US) was their legal advisor, providing both parties with expert guidance to ensure a seamless transaction process.

For further details regarding the acquisition, interested parties can review Form 8-K filed with the U.S. Securities and Exchange Commission available on the SEC's website.

About BCP

Founded in 2013, BCP specializes in the services and infrastructure sector, managing approximately $6 billion in assets under its various investment funds. Their strategy aims to create sustainable value by leveraging experience in acquiring, operating, and expanding businesses within the services and infrastructure realm.

Summary

The sale of The Gray Casualty & Surety Company signifies more than just an exit for BCP; it demonstrates the successful implementation of a well-thought-out investment strategy that prioritizes expansion and innovation within the industry. Moving forward, both BCP and Gray Surety are well-positioned to continue thriving and adapting to the evolving landscape of the surety market.