BCP Announces Sale of The Gray Casualty & Surety Company

Rhea-AI Summary

BCP announced an agreement to sell The Gray Casualty & Surety Company to Palomar Holdings (NASDAQ: PLMR). The transaction was approved by the boards of Gray Surety and Palomar and is expected to close in the first half of 2026, subject to regulatory approvals and customary closing conditions. Gray Surety, a Treasury-listed surety carrier, was acquired by BCP in 2021, is licensed in all 50 states, and operates through 13 regional offices. J.P. Morgan and Kirkland & Ellis advise Gray Surety; Evercore and DLA Piper advise Palomar. Additional details are available in the Form 8-K filed with the U.S. Securities and Exchange Commission.

Positive

• Transaction approved by both Gray Surety and Palomar boards
• Expected close in first half of 2026
• Gray licensed in all 50 states
• Gray operates through 13 regional offices

Negative

• Closing is subject to regulatory approvals and customary conditions

BATON ROUGE, La., Oct. 30, 2025 /PRNewswire/ -- BCP, a services and infrastructure-focused private equity management firm, today announced an agreement to sell The Gray Casualty & Surety Company ("Gray Surety"), a leading surety bond provider for midsized and emerging contractors, to Palomar Holdings, Inc. (NASDAQ: PLMR) ("Palomar").

The transaction has been approved by both Gray Surety and Palomar's boards of directors and is expected to close during the first half of 2026, subject to regulatory approvals and other customary closing conditions.

In 2021, BCP made a significant investment in Gray Surety, a Treasury-listed surety carrier specializing in contract bonds for midsized and emerging contractors across the United States. Led by an experienced, entrepreneurial management team, Gray Surety is licensed in all 50 states and operates through 13 regional offices.

"Over the past four years, we have been proud to partner and work with Gray Surety and its leadership team to help position the company for long-term success," said Jeff Koonce, Partner at BCP. "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 transaction is a reflection of that success and the exceptional foundation built by the Gray team."

"We are thrilled to join the Palomar team, a company that shares our entrepreneurial culture, disciplined underwriting approach, and commitment to the surety market," said Cullen Piske, President of Gray Surety. "Partnering with Palomar provides us with the financial strength, scale, and strategic support to expand our reach, deepen relationships with our agency partners and continue delivering exceptional service to our business partners."

J.P. Morgan is acting as exclusive financial advisor and Kirkland & Ellis LLP is acting as legal advisor to Gray Surety. Evercore is acting as exclusive financial advisor and DLA Piper LLP (US) is acting as legal advisor to Palomar.

Further information on the announced acquisition can be found on Form 8-K filed with the U.S. Securities and Exchange Commission, which can be accessed at www.sec.gov.

ABOUT BCP
BCP is a services and infrastructure-focused private equity management firm established in 2013. BCP has deployed capital in five funds across several strategies and has over $5 billion in assets under management. BCP seeks to create sustainable value by leveraging its experience in acquiring, operating, and growing services and infrastructure businesses. For more information, visit bernhardcapital.com.

ABOUT THE GRAY CASUALTY & SURETY COMPANY
The Gray Casualty & Surety Company, specializing in contract surety bonds for emerging and midsized contractors across the U.S., was founded in 1996 as a wholly-owned subsidiary of The Gray Insurance Company, a family-owned insurance carrier headquartered in Louisiana. With the backing of BCP, Gray Surety has sustained annual double-digit growth while maintaining a loss ratio below the industry average. A Top 50 carrier, Gray Surety operates 13 regional offices from coast to coast and is licensed in all 50 states. For more information, visit graysurety.com. 

Media Contacts:

BCP:
Ed Trissel / Erik Carlson / Madeline Jones
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449

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SOURCE Bernhard Capital Partners Management, LP

FAQ

What did BCP announce about The Gray Casualty & Surety Company sale to Palomar (PLMR) on October 30, 2025?

BCP announced an agreement to sell Gray Surety to Palomar, with board approvals and an expected close in the first half of 2026, subject to regulatory approvals.

When is the Palomar (PLMR) acquisition of Gray Surety expected to close?

The transaction is expected to close during the first half of 2026, subject to regulatory approvals and customary closing conditions.

What geographic footprint does The Gray Casualty & Surety Company have?

Gray Surety is licensed in all 50 states and operates through 13 regional offices across the United States.

Who advised Gray Surety and Palomar on the deal announced October 30, 2025?

J.P. Morgan and Kirkland & Ellis advised Gray Surety; Evercore and DLA Piper advised Palomar.

Does the October 30, 2025 announcement mention financial terms for the Palomar (PLMR) deal?

No financial terms were disclosed in the announcement; further details are available in the Form 8-K filed with the SEC.

How long has BCP owned Gray Surety prior to the announced sale to Palomar (PLMR)?

BCP made a significant investment in Gray Surety in 2021, prior to the announced sale.