Primus Invests in SPARTA Insurance Holdings, Inc.

9/14/2007

HARTFORD, CT — Primus Capital Fund V has joined with Corsair Capital, Goldman Sachs & Co. and York Capital Management in a $279 million equity investment in SPARTA Insurance Holdings, Inc. (“SPARTA”). SPARTA, which is based in Hartford, CT, used part of the proceeds to acquire American Employee Insurance Company, a 52 jurisdiction licensed company, from a subsidiary of OneBeacon Insurance Company. The majority of the equity financing will be used to support SPARTA’s business plan to underwrite property and casualty insurance for the specialty and alternative risk program marketplace. The senior management group, including the company’s Chief Executive Officer, represents the team that previously built a leading specialty insurance company that was funded and successfully exited by Primus Capital Funds II and III. Bill Mulligan represents Primus Capital Fund V on SPARTA’s Board of Directors.

Founded in 1983, Primus is a private equity firm that invests in growth capital opportunities, recapitalizations and management-led buyouts. Primus invests $10-$25 million in control and minority ownership transactions targeting companies with proven business models and superior growth prospects. Although experienced in a number of industries, Primus places an increased emphasis on the business services, healthcare, for-profit education and communications sectors.