BCP Completes Sale of The Gray Casualty & Surety Company

Rhea-AI Summary

BCP completed the sale of The Gray Casualty & Surety Company to Palomar Holdings (NASDAQ: PLMR) effective Feb 2, 2026. BCP originally invested in Gray Surety in 2021; Gray Surety is licensed in all 50 states and operates through 13 regional offices.

This sale is one of three exits BCP announced in H2 2025, following Brown & Root Industrial Services and ahead of the expected United Utility close in Q1 2026. J.P. Morgan and Evercore served as financial advisors; Kirkland & Ellis and DLA Piper served as legal advisors.

Positive

• Sale to Palomar (NASDAQ: PLMR) successfully closed on Feb 2, 2026
• Gray Surety licensed in all 50 states
• Gray Surety operates through 13 regional offices
• BCP investment in Gray Surety since 2021
• This sale is one of three exits BCP announced in H2 2025

Negative

• None.

News Market Reaction – PLMR

-1.88%

-1.88% Session close to close

In the Feb 3 session, PLMR declined 1.88%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement confirms Palomar’s completion of the Gray Surety acquisition, advancing a strategy...

Analysis

This announcement confirms Palomar’s completion of the Gray Surety acquisition, advancing a strategy first outlined in late 2025. Gray Surety adds a Treasury-listed surety platform licensed in 50 states with 13 regional offices. Investors may track how the acquired book integrates with Palomar’s existing specialty lines, monitor any follow-up disclosures in the related Form 8-K, and watch upcoming earnings for clarity on financial contribution and capital deployment priorities.

Key Figures

Investment year: 2021 Regional offices: 13 States licensed: 50 states +2 more

5 metrics

Investment year 2021 Year BCP invested in Gray Surety

Regional offices 13 Gray Surety’s regional office count in the U.S.

States licensed 50 states Gray Surety’s licensing footprint

Exits announced 3 exits BCP exits in second half of 2025 including Gray Surety

Sale timing first quarter United Utility sale expected close timing

Historical Context

5 past events · Latest: Nov 06 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Nov 06	Q3 2025 earnings	Positive	+0.9%	Reported higher net income, premium growth, and raised 2025 adjusted net income outlook.
Oct 30	Gray Surety sale news	Neutral	+1.3%	BCP announced agreement to sell Gray Surety to Palomar, pending approvals.
Oct 30	Gray Surety acquisition	Positive	+1.3%	Palomar agreed to acquire Gray Surety for $300 million in cash, subject to closing.
Oct 28	Earnings call notice	Neutral	-0.2%	Announced Q3 2025 release date and conference call logistics for investors.
Aug 28	Conference participation	Neutral	-0.9%	Disclosed participation in the 2025 KBW Insurance Conference and product focus overview.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent earnings and Gray Surety acquisition announcements have coincided with modestly positive one-day moves, suggesting the stock has historically reacted constructively, but not explosively, to fundamental updates.

Recent Company History

Over the past six months, Palomar highlighted several milestones. Q3 2025 results on Nov 6, 2025 showed stronger profitability and premium growth, with a small positive price reaction. On Oct 30, 2025, Palomar announced the $300 million Gray Surety acquisition, again followed by a modest gain. Additional items included conference participation and earnings call scheduling, which saw limited price impact. Today’s completion of the Gray Surety purchase fits into this ongoing expansion strategy and builds on those prior announcements.

Key Terms

surety carrier, contract bonds, form 8-k

3 terms

surety carrier financial

"a Treasury-listed surety carrier specializing in contract bonds for midsized"

A surety carrier is an insurance company that promises to pay or step in if a business or individual fails to meet contractual, legal, or regulatory obligations—similar to a trusted cosigner who guarantees someone will do what they promised. For investors, knowing a firm is backed by a reputable surety carrier reduces the risk of loss from failed projects or unmet obligations, and it signals stronger credit reliability and lower counterparty risk.

contract bonds financial

"surety carrier specializing in contract bonds for midsized and emerging contractors"

Contract bonds are guarantees issued by a third party (usually a bonding company) that promise a contractor will complete a job and pay suppliers and workers as agreed; if the contractor fails, the bond pays or the surety finds someone to finish the work. Think of it as a co-signer or insurance policy for a contract: it lowers the risk that a project will halt or leave unpaid bills, which matters to investors because bond claims can signal higher project or credit risk and affect a company’s cash flow and reputation.

form 8-k regulatory

"information on the acquisition can be found on Form 8-K filed with the U.S."

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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BATON ROUGE, La., Feb. 2, 2026 /PRNewswire/ -- BCP, a services and infrastructure-focused private equity management firm, today announced the successful closing of the previously announced sale of The Gray Casualty & Surety Company ("Gray Surety") to Palomar Holdings, Inc. (NASDAQ: PLMR) ("Palomar").

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 and entrepreneurial management team, Gray Surety is licensed in all 50 states and operates through 13 regional offices.

Gray Surety is one of three exits BCP announced in the second half of 2025, including the sale of Brown & Root Industrial Services, which closed in October, and United Utility, which is expected to close in the first quarter of this year.

"We're pleased to complete the Gray Surety sale, marking another important milestone in BCP's disciplined investment and value-creation strategy," said Jeff Koonce, Partner at BCP. "Since our investment in 2021, Gray Surety has delivered significant growth, expanded its national presence, and deepened its reputation as a trusted surety partner to contractors across the country. We are proud of the company's continued success and grateful to the Gray Surety team for their exceptional execution."

Cullen Piske, President of Gray Surety, added: "We are grateful to BCP for their partnership and support over the past four years. BCP's operational approach helped us scale the business and expand our national footprint, and we are excited to build on that momentum going forward with Palomar."

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 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 $6 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 specializes in providing contract surety bonds to emerging and mid-sized contractors across the United States. Founded in 1996 as a subsidiary of The Gray Insurance Company, Gray Surety has grown into a Top 50 surety carrier, maintaining a strong national presence with offices coast to coast.

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

View original content:https://www.prnewswire.com/news-releases/bcp-completes-sale-of-the-gray-casualty--surety-company-302676788.html

SOURCE Bernhard Capital Partners Management, LP

FAQ

What did BCP announce about the sale of Gray Surety to Palomar (PLMR) on Feb 2, 2026?

BCP announced the successful closing of Gray Surety's sale to Palomar Holdings (NASDAQ: PLMR). According to BCP, the transaction completes a divestment that began with BCP's 2021 investment and follows other exits announced in H2 2025.

How is Gray Casualty & Surety Company geographically positioned after the Palomar (PLMR) acquisition?

Gray Surety is licensed to operate in all 50 U.S. states and has a national footprint. According to BCP, the company serves midsized and emerging contractors through 13 regional offices across the United States.

Who advised the parties on the Gray Surety sale to Palomar (PLMR)?

J.P. Morgan and Kirkland & Ellis advised Gray Surety; Evercore and DLA Piper advised Palomar. According to BCP, J.P. Morgan served as exclusive financial advisor and Kirkland & Ellis as legal advisor to Gray Surety.

When did BCP originally invest in Gray Surety and how long was the investment period before the PLMR sale?

BCP invested in Gray Surety in 2021, making the hold period roughly four years before the 2026 sale. According to BCP, that period included growth and national expansion under its operational partnership.

What other portfolio exits did BCP announce alongside the Gray Surety sale in H2 2025?

BCP announced the sale of Brown & Root Industrial Services in October 2025 and expects United Utility to close in Q1 2026. According to BCP, Gray Surety is one of three exits disclosed in the second half of 2025.