Louisville Business First
DPL Financial Partners secures $26 million in growth capital
A Louisville-based fintech company is getting a large private equity investment from two big-name firms.
DPL Financial Partners, an insurance network for registered investment advisors (RIAs), announced a $26 million combined equity capital investment on Wednesday from its initial investor, Eldridge, and Atlas Merchant Capital, the private investment firm founded by former Barclay's CEO Bob Diamond and David Schamis.
The startup, headquartered in East Louisville, plans to invest the proceeds in the development of technology and infrastructure to support its growing adviser base of more than 10,000 advisers and continue to bring commission-free annuity and insurance products to their clients, according to a news release.
“Eldridge has been with us from the start, so they understand the business we’re building, the huge opportunity in front of us, and the place technology has always occupied at the forefront of our strategic plan,” said David Lau, founder and CEO of DPL, in the release. “Their renewed commitment, combined with new backing from Atlas and its renowned leadership team, is incredibly gratifying and exciting.”
As Business First previously reported, Lau was formerly chief operating officer of Jefferson National Financial Corp. and has been developing DPL Financial since 2014. The company has since had fast growth, generating about $200 million in revenue and creating more than 25 jobs by the end of its first year in business in 2019.
“David and his team are evolving annuity distribution by leveraging data, technology and education,” said Todd Boehly, chairman and CEO of Eldridge and co-owner of the Los Angeles Dodgers. “They have created a marketplace of value-focused products providing more optionality for people to meet their financial goals.”
“Our team of operators at Atlas were attracted to the opportunity to back a firm focused on the fundamental, technology-oriented transformation of commission-driven insurance distribution,” added Diamond, founder and CEO of Atlas Merchant Capital. “David has a track record of building businesses that disrupt industries and deliver tremendous value to clients.”
In connection with the investments, representatives from Atlas Merchant Capital and Eldridge will be joining a newly formed board of directors for DPL that will also include Lau and two independent members to be named later.