Ardonagh will be using the proceeds to support its business expansion plans
The Ardonagh Group, a British insurance broker, has secured a £1.87bn financing commitment from a lending group led by Ares Management, which is serving as the lead arranger.
The insurance broker will be using the proceeds to support its business expansion plans.
Ares Management is arranging the financing through its global direct lending platform and is joined by other lenders like Caisse de dépôt et placement du Québec (CDPQ), HPS Investment Partners, and KKR.
HPS Investment Partners alongside Madison Dearborn Partners is the majority owner of Ardonagh.
The financing is made up of a £1.57bn unitranche loan and a £300m committed capital expenditures facility and will be part of the insurance broker’s global refinancing.
Ares Credit Group European credit partner and co-head Blair Jacobson and Ares Management US direct lending partner and co-head Mark Affolter said: “We believe this is the largest ever unitranche financing transaction globally, which is a testament to the quality of The Ardonagh Group, our long-standing relationships with HPS Investment Partners and Madison Dearborn Partners and the advantages created by our global and scaled platform.”
Founded in 2017, Ardonagh is said to have significantly expanded the following year via multiple acquisitions to combine certain insurance brokerage brands in the UK. Some of these include Autonet, Bishopsgate, Carole Nash, Price Forbes, Geo Underwriting, Swinton, Towergate, and URIS.
Ardonagh CEO comments on the financing commitment
Ardonagh CEO David Ross said: “The substantial commitment from this lending group led by Ares is a vote of confidence in Ardonagh and our management team. The structure of the unitranche facility and additional committed capital expenditures facility leave us well positioned to deliver the next phase of our growth strategy and beyond.”
In a separate development, the insurance broker has signed share purchase agreements to acquire Nevada 4 Midco 1, the holding company of Bravo Investments, and Nevada 5 Topco, the holding company of Arachas Topco, from funds managed by HPS Investment Partners and Madison Dearborn Partners.
Bravo operates under the Broker Network, Compass, and Ethos Broking brands, while Arachas is an Irish SME-focused commercial insurance broker.