Global insurance brokerage Acrisure has secured investment commitment worth $2bn from a group of investors led by funds managed by Blackstone's GSO Capital Partners and Tactical Opportunities businesses.
Image: Acrisure raises $2bn investment from three funds. Photo: courtesy of rawpixel/Unsplash.com.
Acrisure also revealed that Partners Group has also increased its investment in the company. Harvest Partners SCF has also committed to make a preferred equity in the company.
Based in Caledonia, the company is a retail consulting and insurance brokerage which offers property and casualty, employee benefits, human resource outsourcing, loss and claims management, personal lines solutions and surety bonding.
The company has more than 400 Agency Partners with locations in 32 US states in addition to seven international locations. Acrisure has a workforce of around 5,600 employees.
With the latest equity investment, its implied valuation has crossed $7bn with its management team and agency partners retaining a stake of more than 83% in the insurance brokerage.
Over the last two years, the company has raised its revenue from $650m to about $1.5bn. Last year, the company made 92 acquisitions and expects to wrap up more than 100 by the year end.
In 2016, the insurance brokerage completed a management-led buyout (MBO) worth $2.9bn in a transaction led by its president and CEO and co-founder Greg Williams and a consortium of minority investors.
Williams said: “Over the past two years, we have grown enterprise value from $2.9 billion at the time of the MBO in 2016 to over $7 billion today. Further, we have strengthened our position as a leading global provider of insurance solutions and continued to build a pipeline of culturally compatible agency prospects that we look forward to welcoming into the Acrisure family.
“Importantly, the company continues to be primarily employee owned, with over 83% ownership in the hands of employees.”
Blackstone and Partners Group also took part in the initial group of investors backing the MBO.
GSO Capital Partners senior managing director Louis Salvatore said: “Acrisure has grown at an accelerated rate as a result of the efforts of Greg and his management team and agency partners who control the company.
“Based on this progress, we are very optimistic about the company’s continued future performance and we remain strongly supportive of the team as it accelerates Acrisure’s growth trajectory.”