Investcorp acquires automotive claims management company CCC

In the United States, US$95 billion is spent each year on servicing claims following accidents or damage to the 225 million vehicles that drive on US roads. Insurance companies, collision repair facilities and independent appraisers need services to help them manage these claims effectively. CCC provides them with vital software and information that helps them estimate claim costs and communicate better. This ensures that claims are processed and settled cost effectively, efficiently and fairly for the insurance company, repairer and customer.

Opportunities to make private equity investments in CCC are currently being offered to a select group of Investcorp's institutional and individual investors in the region.

Established in 1983, with its headquarters in Chicago in the United States, CCC is undisputed market leader in its field. Its products all have high market penetration with, in some cases, market shares of 80%. It has a customer base that is unrivalled by its competitors and includes eight out of the top ten insurance companies and the 21,000 collision repair facilities that represented 48% of industry revenue in 2005.

Investcorp Chief Operating Officer, Gary Long, said: "CCC is the undisputed market leader. Customers come to CCC, as it is the only player in its industry that can give them a bundle of integrated services. We estimate that its products could potentially be put to work by 40% of the market: that's US$ 40 billion worth of claims per year. This market also has high barriers to entry.

"We believe investors will find this private equity investment particularly interesting. It is highly cash generative, with strong earnings visibility, fixed infrastructure, and requiring low ongoing capital expenditure. This is an investment that is absolutely right for current market conditions - the kind of investment we are experts in and that our investors always ask us to find more of."

Private equity is one of four products in Investcorp's range of alternative investment products, alongside real estate investment, hedge funds and venture capital.