Paratus Commercialised World's First Energy & Freight Insurance Policies
Innovative Insurance Solution Helps Companies Manage Price Risk Exposure
as Energy Transition Accelerates
Expansion Enabled by Growth Equity Investment from Ara Partners
ST. PETER PORT, Guernsey and DUBLIN, Jan. 17, 2024 -- Paratus Holdings Limited ("Paratus") today announces the expansion of commercial operations and the introduction of its highly innovative renewable power price-risk insurance solution. The announcement follows the completion of a growth equity investment from Ara Partners ("Ara"), a global private equity and infrastructure firm that specializes in industrial decarbonisation investments.
Since its founding in 2020, Paratus commercialised the world's first energy and freight insurance policies and is now launching a proprietary insurance policy that protects producers and consumers of renewable power and transition fuels from energy price risks. Compared to currently available risk management solutions, the Paratus product produces superior outcomes and provides additional flexibility for customer strategies across a large and growing addressable global market.
"While the energy transition presents significant opportunities, complex risk management challenges remain for producers and consumers of renewable energy and transition fuels," said Gus Majed, Group CEO & Founder of Paratus. "Paratus began with a simple belief that there must be a better way for industry to protect against energy price volatility. Our proprietary insurance-based risk management product materially improves returns compared to traditional alternatives. With Ara's investment, partnership, and network, we will be able to significantly scale the Paratus offering, creating enhanced value opportunities for our customers and realising our significant potential."
Christopher Picotte, Partner at Ara Partners, commented, "Renewable electricity and green fuels are evolving from niche products reliant on subsidies to dominant, supply/demand-driven products across global energy markets. Paratus has pioneered an innovative market-based solution that will give energy producers and consumers an economical and flexible way to manage risk exposure and advance their commercial strategies. Through our partnership, Paratus will be able to scale quickly while playing a critical role driving the universal adoption of low/zero-carbon energy. We are delighted to partner with Gus and the management team and to support the growth of the company."
The investment builds on Ara Partners' history of investing in businesses and services that meaningfully advance the decarbonisation of the industrial economy.
Paratus offers the world's first renewable power, transition fuels and freight price-risk insurance policies to protect producers and consumers from excessive balance-sheet exposure. Paratus' transparently priced policies eliminate the need for costly in-house trading capabilities, and the use of complex hedging products.
Guernsey domiciled and regulated by the Guernsey Financial Services Commission to underwrite general business. Paratus Maritime Insurance Limited transfers risk to particular Underwriters at Lloyd's (rated "A+" by Standard & Poor's and "AA-" by Fitch Ratings), to enhance financial security for clients worldwide.
For more information about Paratus please visit: https://www.paratusltd.com/
About Ara Partners
Ara Partners is a global private equity and infrastructure investment firm focused on industrial decarbonization. Founded in 2017, Ara Partners seeks to build and scale companies with significant decarbonization impact across the industrial and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture sectors. The company operates from offices in Houston, Boston, Washington, D.C., and Dublin. Ara Partners closed its third private equity fund in December 2023 with over $2.8 billion in capital commitments. As of September 30, 2023, Ara Partners had approximately $5.6 billion of assets under management. For more information about Ara Partners, please visit www.arapartners.com.
For Ara Partners:
Scott Bisang / Jack Kelleher