Buyout at USA Risk Group
Independent captive management firm USA Risk Group‘s senior management team in May 2019 completed a management buyout from Spencer Capital Holdings. The buyout includes operations from all jurisdictions USA Risk Group operates in.
The senior management team includes Paul Macey as President; Rob Leadbetter, Senior Vice President and Charmain Aggarwal, Vice President. Jeanne Crawford leads the Barbados office; John Tortell, the Malta office; and Steven Lill, the Cayman Islands office.
Former Chairman and founder H. Lincoln Miller, Jr., carries on in an advisory role.
USA Risk Group is headquartered in George Town, Grand Cayman.
Shady Dealings by Previous Owners, Spencer Capital?
According to a December 2018 report by the Westchester County Business Journal, USA Risk Group’s previous owner, Rye, NY-based hedge fund Spencer Capital, is subject to a lawsuit brought in December 2018 by Bermuda-based Cavello Bay Reinsurance. Cavello is a subsidiary of Enstar Group, a publicly traded, global insurance company with USD 15.1 billion in assets, also based in Bermuda. Cavello sues Spencer Capital and Kenneth Shubin Stein, its founder and CEO, for misrepresentation of USD 4.4 million in performance fees. Spencer Capital is a private holding company that owns or owned insurance assets such as Southwest Dealer Services, Spencer Re and USA Risk.
If the facts quoted in the Cavello lawsuit are correct, then they probably have triggered the management buy-out and have resulted in favorable terms for the new owners.