Univista – David Perez (Avance Investment Management), (S3.EP.04)
Oct 18, 2023
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David Perez, Co-Founder and Managing Partner at Avance Investment Management, discusses the Univista deal including its history, valuation, financing, and exit strategy. They also touch on organic growth, M&A opportunities, challenges in the insurance industry, and the shift to MGA. The episode concludes with insights on value creation, the exit strategy, and lessons learned in private equity.
Avance Investment Management focuses on building a people-first culture and leveraging technology to drive value creation in middle market private equity deals.
Univista Insurance utilizes a technology-centric approach to effectively target customers and drive success in the Hispanic insurance market.
Deep dives
Avonse Investment Management: A People-First Approach to Private Equity
Avonse Investment Management is a middle market private equity firm focusing on US services and consumer businesses. Founded in 2020, Avonse prioritizes building a people-first culture and leveraging technology to drive value creation. With a billion dollar first-time fund, they have attracted a talented roster of professionals in strategy, talent, and business development. Their focus is on founder-owned businesses in the middle market range, with a specific interest in recurring and secular trends. Avonse seeks to help these businesses grow in a range of areas, including organic growth, mergers and acquisitions, and geographic expansion. They aim to build loyalty, trust, and deep customer relationships, recognizing the importance of localized presence and cultural nuances in appealing to the Hispanic market.
Univista Insurance: A Technology-Centric Insurance Agency
Univista Insurance is a South Florida-based insurance agency that primarily caters to the Hispanic community. Founded in 2006 by Cuban immigrants, Univista specializes in selling various insurance policies, including auto, home, life, health, and commercial coverage. They have a technology-centric approach, utilizing data and technology to effectively target customers and drive success in a market that requires a personal touch. Univista's business model combines franchising with company-owned call centers, providing a unique and scalable distribution strategy. They have strategically focused on serving the non-standard auto insurance segment within the Hispanic demographic. Univista's growth strategies include organic expansion, mergers and acquisitions, and the development of a Master General Agency (MGA) to enhance underwriting capabilities.
Investment Process and Deal Sourcing: Avonse's Entrepreneurial Approach
Avonse's deal sourcing process is driven by relationships, networking, and active involvement in the community. Their focus on the middle market space has allowed them to develop personal connections with founders and entrepreneurs. This gives them proprietary insights and opportunities that are often inaccessible to traditional investment banking channels. When evaluating an investment opportunity, Avonse looks for business models that benefit from long-term secular trends and possess recurring revenue streams. They focus on founder-owned businesses in the services, technology, and consumer sectors. They also consider geographic expansion, organic growth, and M&A as potential avenues for value creation.
Underwriting and Growth Drivers: Univista's Unique Value Proposition
The underwriting process for Univista involves assessing the quality of their products, reputation with carriers and customers, and financial performance. They prioritize developing long-term relationships and professionalism with carriers and franchisees. Univista's growth drivers include organic growth through expanding call center operations, M&A opportunities, geographic expansion (particularly in Texas), and the development of a Master General Agency. They focus on serving the needs of the growing Hispanic market, leveraging technology, and deepening customer relationships to generate loyalty. Their value proposition lies in their ability to combine personalized service, technology, and cultural understanding to successfully tap into the non-standard auto insurance segment within the Hispanic community.
David Perez is the Co-Founder and Managing Partner at Avance Investment Management, a middle-market private equity firm focusing on U.S. services and consumer businesses that he launched with a billion-dollar first time fund after spinning out of Palladium Equity Partners in 2020.
Univista Insurance is a South Florida-based insurance agency offering auto, home, life, health, and commercial policies primarily to the Hispanic community that was founded and run by Cuban immigrants in 2006.
Our conversation covers Univista’s history and business, sourcing of the deal, opportunities and risks, and deal process. We discuss valuation and financing, drivers of the business post-acquisition, and exit strategy down the road.