Thomas H. Lee Partners LP, a private equity firm investing in middle-market growth firms, has made a strategic growth investment in Carpe Data, a provider of emerging and alternative data products for the insurance industry.

As a result of the investment, Thomas H. Lee Partners will become the majority stakeholder in the firm. Carpe Data uses proprietary algorithms and artificial intelligence to transform data into predictive and actionable insights to be delivered to insurance carriers. The firm enables its customers to automate claims decisions and improve outcomes within the insurance lifecycle. The deal represents this tenth investment from THL’s Automation Fund.

“As leading investors in the insurance and automation space for over 20 years, we have witnessed the growing demand among carriers for automated alternative data and predictive analytics to improve performance and gain a competitive edge in all key workflows,” said Edward Shahnasarian, director at THL. “With a strong track record of innovation and growth, Carpe Data is meeting this demand by creating a new market for alternative data to unlock automation and improve outcomes across the insurance lifecycle. We are excited to partner with this innovative and industry leading team to accelerate their vision.”

Cooley LLP served as legal counsel and William Blair served as financial advisor to Carpe Data. Kirkland & Ellis LLP served as legal counsel and Raymond James & Associates served as financial advisor to THL.