Southlake, TX –Gauge Capital (“Gauge”) announced that it has partnered with the management team of Affordable American Insurance (https://www.insuranceaai.com/) (“AAI” or the “Company”) to provide growth capital and recapitalize the Company. Founded in 2005, AAI is a tech-enabled, Property & Casualty (“P&C”) insurance agency network that provides independent insurance agencies with a comprehensive platform that includes access to more than 50 A-rated carrier partners, more than 20 profit-bonus programs, proprietary data and analytics, and growth advisory services. AAI supports approximately 100 independent agencies across 40 states and operates a wholly-owned internal insurance agency. AAI has built a differentiated, technology-driven platform designed to empower agents, allowing agencies to grow more efficiently while maintaining strong client outcomes. AAI has achieved strong agency retention, while delivering consistent growth in premium, revenue, and profitability.

The investment will support AAI’s continued growth by expanding its team and resources, accelerating organic expansion within its agency network, and pursuing strategic acquisitions to further scale its national platform.

"AAI is excited to partner with Gauge Capital as we enter our next phase of growth while staying true to our core mission and vision for market leadership," said Chris Fernandez, President & CEO of AAI. "We needed a partner who understood our culture and could help us scale. This partnership provides us with the capital and resources to accelerate our strategic growth plan while maintaining the exceptional service our clients expect."

Sam Smith, Principal at Gauge Capital, added, “Chris and the AAI management team have built a differentiated platform with strong carrier relationships, attractive agency partner economics, and a compelling growth runway. We have been impressed by AAI’s disciplined approach to expansion and its focus on supporting agency partners. We are excited to partner with the team in this next phase of growth.”

Ropes & Gray served as transactional legal counsel to Gauge, with Piper Sandler & Co. as the buy-side advisor. Class VI Partners served as financial advisor to Affordable American Insurance, and Ballard Spahr served as legal counsel to the Company.

About Gauge Capital 
Gauge Capital is a middle-market private equity firm based in Southlake, Texas. Gauge invests in five key sectors: business services, food & consumer, government & industrial services, healthcare, and technology. The firm manages more than $3.0 billion in capital. For more information, please contact Andrew Peix, Partner, Business Development at apeix@gaugecapital.com.

About Affordable American Insurance 
Affordable American Insurance (“AAI”) is a scaled insurance agency network platform built to support and grow high-quality independent P&C agencies. Founded in 2005, AAI helps independent agencies thrive as entrepreneurs through its industry-leading platform, including centralized operational, legal, and technology support, access to a national array of carrier appointments, enhanced commission economics, and profit-sharing programs. The platform serves agencies across ~40 states. AAI also operates an internal insurance agency that writes and services its own book of business through a dedicated support team. For more information, please contact Ross Haskett, VP of Sales at rhaskett@Insuranceaai.com.