Hagerty, a speciality insurance provider that serves the global automotive enthusiast market, has received $105m in capital to fund its growth initiatives.

The funds were provided by the company’s current strategic investors such as State Farm, Markel Group and the Hagerty family.

It includes $80m of convertible preferred equity and a $25m of long-term debt financing commitment for Hagerty Reinsurance.

The proceeds will be used by Hagerty to advance the development of its risk capability and core product to strengthen its portfolio for existing members.

It will also enable the company to attract new members, who account for 33 million enthusiast vehicles in the US and is anticipated to drive significant written premium and operating profit growth in upcoming years.

Furthermore, Hagerty will be able to continue ongoing technology investments that expect to fuel its operating efficiencies and enhance customer-facing interactions.

Hagerty CEO Officer McKeel Hagerty said: “We have been working diligently over the last six months to deliver improved profitability and margin expansion while making the investments necessary to sustain our growth trajectory for many years to come. 

“We believe that the additional capital positions us well during uncertain economic times to execute against our significant growth opportunities.”

Hagerty primarily offers speciality vehicle insurance, expert car valuation data and insights as well as live and digital car auction services, among others.

Last August, Hagerty announced a deal to purchase the remaining stake in Broad Arrow Group, a specialist in the transactional segments of the collector car market.