Hales & Company and Investor Group Announce the Formation of Dowling Hales

New Firm to Provide Transactional Advice to the Insurance Industry

NEW YORK--(BUSINESS WIRE)-- An investor group and the partners of Hales & Company have formed Dowling Hales to provide corporate finance advice on mergers & acquisitions, divestitures and recapitalizations to businesses in the insurance industry. The new firm will cater to companies across all segments of the insurance industry, including retail and wholesale brokerage firms, MGAs and MGUs, insurance companies and insurance-related services businesses.

Dowling Hales will acquire certain assets of Hales & Company, including the Hales Report, and have additional capital to support further expansion. The new firm will be owned by DHS Partners LLC, an investment firm controlled by the partners of Dowling & Partners; current partners of Hales; and Jeffery B. Cappel, a long-time investor in insurance distribution. Mr. Cappel, who served as CEO of Hales prior to 2004, will serve as non-executive Chairman and John J. Kraska and Robert J. Seda, currently the two largest shareholders of Hales & Company, will serve as Chief Executive Officer and President, respectively, of Dowling Hales.

The transaction is expected to close by April 30 and terms were not disclosed.

“I have long been impressed with Hales’ market presence, specialized knowledge of the broad insurance intermediary market, and proven deal execution capabilities. My partners and I are excited about the opportunity to invest alongside the key principals of Hales,” said V.J. Dowling. “We also look forward to the day when the Hales Report for the intermediary market is a complement to the IBNR Weekly,” he added.

According to John Kraska, CEO, “With our new investors, we plan to expand our reach across the industry. We gain access to Dowling’s industry-leading research and ideas across a broad range of sectors that further strengthens the reasoned advice we deliver to our clients. We are confident Dowling Hales will become a leading boutique investment banking firm in the insurance industry.”

Robert Seda, President, added, “Since 2004, when John and I took leadership of Hales, we have grown our business profitably and had not considered a need for an outside partner. When discussions started with V.J. and Jeff, it became obvious to us that this transaction is a natural way for us to expand our firm with people we know and respect. Our clients will continue to receive the service and advice they expect from Hales and will now benefit from the broader reach in the industry that our new partners bring to the firm.”

Founded in 1972, Hales & Company is one of the oldest and most experienced advisory firms focused exclusively on the insurance industry. Over the past nearly four decades since its founding, the firm has grown to become a leading nationwide advisor to the insurance and insurance distribution sectors.

Hales & Company, together with its broker-dealer, Hales Capital Securities (“HCS”), member of FINRA/SIPC, is dedicated to the insurance sector and has an unmatched M&A track record among advisors to the insurance industry. Since 2000, Hales has advised on 175 transactions and is well-known for professionalism, integrity and reputation as a leader in providing M&A advice.

Hales & CompanyJohn Kraska, 212-592-5709

Source: Hales & Company