Stone Point Capital to Acquire Majority Stake in LegalShield from MidOcean Partners


LegalShield, an Ada, Oklahoma-based provider of legal plans and a leading provider of identity theft solutions, has announced that funds managed by private equity firm Stone Point Capital LLC have entered into a definitive agreement to acquire a majority interest in LegalShield from funds controlled by MidOcean Partners, which acquired the legal services firm in 2011.

The deal is expected to close in the second quarter of 2018. Financial terms of the transaction were not disclosed. LegalShield’s management will be co-investing alongside Stone Point and MidOcean, which is retaining a minority stake in the business. The current management team, business model and employee base are not expected to change with this investment. The company’s headquarters will remain in Ada.

LegalShield’s mission since its founding in 1972 is to provide access to affordable legal coverage for all members, no matter how traumatic or trivial the situation. LegalShield offers subscription-based plans for legal and identity theft services and has grown to become the No. 1 subscription-based provider of legal plans to families and small businesses across the U.S. and Canada. The company has a network of dedicated law firms in all 50 states and four Canadian provinces, with more than 39 provider law firms providing legal protection to over 1.7 million members.

“We are very excited to begin our partnership with Stone Point and continue our relationship with MidOcean,” said Jeff Bell, LegalShield’s CEO. “Stone Point has tremendous resources and experience in the financial services sector and a proven track record of helping management teams drive their businesses to the next level. MidOcean has been a strong partner for us since their initial investment in 2011, and we look forward to their continued support going forward.”

“We are incredibly proud of our partnership with LegalShield and the company’s success,” said Frank Schiff, managing director at MidOcean. “The management team has done an excellent job of growing its membership base, introducing new products and features, and expanding the company’s distribution channels. We are excited to partner with Stone Point and believe their experience in the financial services sector, generally, and the voluntary benefits sector, specifically, will greatly enhance the growth opportunities for the company.”

Fayez Muhtadie, principal at Stone Point, added, “We are thrilled to be partnering with the LegalShield team and MidOcean. We have a long history of experience in the employee benefits sector and see significant opportunities for the company to expand its presence across channels and geographies. We look forward to working with Jeff and his talented management team to support the company in its continued growth.”

Stone Point Capital LLC is a financial services-focused private equity firm based in Greenwich, Connecticut. The firm has raised and managed seven private equity funds, the Trident Funds, with aggregate committed capital of approximately $19 billion.

Established in 2003, MidOcean Partners is a New York-based alternative asset manager that specializes in middle market private equity and alternative credit investments. MidOcean Credit Partners was launched in 2009 and manages approximately $6.9 billion across a series of alternative credit strategies, collateralized loan obligations and customized separately managed accounts as of November 30, 2017.