Activist hedge fund Elliott Investment Management has built a significant stake in car insurance software provider CCC Intelligent Solutions Holdings, as the company explores strategic options including a potential sale, according to a report by Bloomberg.
The report cites unnamed people familiar with the matter as highlighting that Elliott’s investment is being led by professionals within the firm’s private equity business rather than its traditional activist team. The size of the stake has not been disclosed.
Sources said Elliott acquired its position before CCC appointed an adviser to evaluate strategic alternatives. Discussions remain at an early stage and there is no guarantee the review will lead to a transaction.
Elliott reportedly declined to comment, while CCC was not immediately available for comment, according to Bloomberg.
Shares in CCC climbed 10% on Friday to close at $5.92, valuing the company at approximately $3.5bn. Despite the rally, the stock has lost around 39% over the past 12 months.
The strategic review comes after a difficult period for the company, which was valued at roughly $7bn when it listed through a special purpose acquisition company (SPAC) merger in 2021. Former owner Advent International acquired the business in 2017 before exiting its remaining investment last year.
CCC develops software used by insurers and repair shops to manage vehicle claims and repair workflows. The company has previously explored a sale, attracting interest from private equity firms including Bain Capital and TPG in 2023.
For Elliott, the investment highlights the breadth of its investment platform beyond its well-known activist campaigns. While the firm has built its reputation by taking influential stakes in listed companies and pressing for operational or strategic changes, it also invests across credit, commodities, real estate and private equity.
Elliott has been active in private equity transactions for more than a decade. In 2023, the firm retired the Evergreen Coast brand used for its buyout business to better reflect the integration of its private equity activities within the broader investment platform.
Its private equity portfolio has included investments in Cloud Software Group, Barnes & Noble, Syneos Health and Nielsen Holdings.
