Mutual Capital Investment Fund, LP (“MCIF” or the “Fund”) a recently formed private fund focused on making investments in mutual holding companies and mutual insurance companies, announced its initial investment in common equity of Forge Group, Inc. (“Forge”) which closed March 11, 2022. The Fund purchased 556,335 shares of common stock issued by Forge in connection with the conversion of Amalgamated Casualty Insurance Company (“ACIC”) from a mutual to a stock company. ACIC, which will be renamed Forge Insurance Company, is now a wholly owned subsidiary of Forge. MCIF purchased approximately 27% of the 2,050,000 shares Forge offered.
Jay Chadwick, chairman of the Fund sponsor, Mutual Capital Group, Inc., stated “I am pleased that MCIF was in a position to commit over $5.5 million to the purchase of Forge stock. I have known Patrick Bracewell, chairman and CEO of Forge, for several years and believe in Patrick and the business plan of Forge. Patrick and his team are discerning. This transaction is a meaningful milestone in the plan that he and the board of Forge created to grow the company in a deliberate and profitable manner.”
Jason Wolfe, president and CEO of the Fund’s management company, Mutual Capital Investment Advisors, LLC stated “This is an exciting time for MCIF. After closing on our initial round of capital raising in December, we are extremely pleased to begin getting capital to work as part of ACIC’s conversion from a mutual to a stock company.” In addition to his role with the Fund, Mr. Wolfe is the lead independent director of Forge and has been a trustee of ACIC for the past 10 years. Mr. Wolfe also noted “The closing of this investment is further proof that MCIF’s strategy of being a patient, mutual-friendly source of capital is viable as we now turn our sights to other investment opportunities and the continuation of our capital raising efforts. We look forward to completing our capital raise, investing in other well-run insurance companies and producing attractive risk-adjusted returns to our limited partners.”
Patrick Bracewell, chairman and CEO of Forge, said “It has been a pleasure to work with MCIF on this transaction. The transition from mutual to stock form is not something our board took lightly. However, in the context of our long-term business plan, it was a transition we believe best positioned the organization for success.
Throughout the process, MCIF provided valuable counsel and unwavering support. It has been a pleasure getting to know Jay Chadwick over the past few years. Jay and his organization understand both the unique cultural aspects of mutual insurance companies and also the unique business issues facing mutual insurance companies. I have the benefit of having worked with Jason Wolfe for many years, so MCIF’s participation in our transaction was a natural evolution of our business relationship. Among other things, the Fund’s commitment to our transaction provided certainty of closing during what was a volatile period in the capital markets. Based on our own experience evaluating capital alternatives over the past two years, it is my belief that
Mutual Capital Investment Fund is truly differentiated and is uniquely positioned to be the “go-to” capital partner for other mutual insurance companies over time. I believe MCIF is well-positioned to generate attractive risk-adjusted returns for its investors while providing patient and supportive capital to mutual companies. I expect Forge will make a meaningful capital commitment to MCIF from our own investment portfolio and I look forward to seeing the Fund partner with other mutual insurance companies over time.”
For more information on the Fund contact:
Jay Chadwick: (570) 721-0342; jchadwick@mutualcapitalgrp.com
Jason Wolfe: (216) 256-8504; jwolfe@mutualcapitalfund.com
Jeffrey Waldron: (610) 223-8675; jeffrey.waldron@griffinfingroup.com
