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

BCP's Strategic Move: Selling The Gray Casualty & Surety Company

On October 30, 2025, BCP, a firm specializing in private equity management focused on services and infrastructure, disclosed its agreement to sell The Gray Casualty & Surety Company to Palomar Holdings, Inc., known for its commitment to the insurance market. This strategic decision reflects BCP's ongoing initiative to optimize its portfolio in the competitive world of surety bonds.

A Transaction Built on Success

The Gray Casualty & Surety Company, often referred to as Gray Surety, has established itself as a prominent provider of surety bonds catering to midsized and emerging contractors across the United States. The deal has already garnered approval from the boards of both companies and is set to conclude in the first half of 2026, pending regulatory approvals and other customary closing conditions. BCP’s journey with Gray Surety began back in 2021, when it significantly invested in the company, looking to enhance its operational capabilities and market reach.

Under BCP's stewardship, Gray Surety demonstrated impressive growth, expanding its footprint nationally and solidifying its reputation as a trusted partner for contractors. Jeff Koonce, a partner at BCP, expressed pride in the work accomplished over the past four years, stating, "Together, we have seen the company achieve significant growth, expand its national footprint, and strengthen its reputation as a trusted surety partner to contractors across the country." This underlines the achievements made possible through strategic collaboration.

Joining Forces with Palomar

For Gray Surety, the partnership with Palomar represents the next phase of growth. Cullen Piske, President of Gray Surety, shared his enthusiasm about the merger, stating, "We are thrilled to join the Palomar team, a company that shares our entrepreneurial culture and commitment to the surety market." This alignment suggests that both companies have synergistic goals and shared values regarding underwriting and service delivery.

Partnering with Palomar is expected to provide Gray Surety with the necessary financial robustness and strategic backing to further deepen relationships with agency partners and enhance service quality. The merger symbolizes an expansion of capabilities, aligning with their commitment to provide exceptional service within the changing landscape of the surety bond market.

The Path Forward

J.P. Morgan and Evercore are advising both firms financially on this transaction, while Kirkland & Ellis LLP and DLA Piper LLP are providing legal counsel respectively. The transition is anticipated to yield positive results for both companies’ stakeholders, as they aim to maintain their competitive position in the marketplace while focusing on innovative solutions tailored to meet the evolving needs of contractors.

In conclusion, the strategic sale of The Gray Casualty & Surety Company not only highlights BCP’s adeptness in navigating complex financial landscapes but also opens new avenues for Gray Surety under Palomar's expansive umbrella. This merger promises to impact the surety market positively, creating a formidable player well-positioned to address the multifaceted demands of today's contracting environment.

Whether this deal will initiate a trend in further consolidation within the insurance sector remains to be seen, but BCP's decision marks a noteworthy moment in private equity strategies as firms seek alliances to bolster their service offerings and market influence.