Caisse de depot et placement du Quebec (CDPQ), a Canadian pension fund company, has agreed to invest more than $400m to acquire a minority stake in UK-based Hyperion Insurance Group.
The investment allows CDPQ to join the insurance company as a long-term growth partner alongside global growth equity firm General Atlantic.
In 2013, General Atlantic acquired a stake of around 30% in 2013 in Hyperion.
Hyperion CEO David Howden said: “CDPQ is a fantastic partner to support us on the next leg of our journey.
“Their strategy to invest based on long term fundamentals combined with their deep understanding of insurance markets and significant international portfolio, mean they will deliver valuable insight to help direct our future plans, whilst remaining supportive of our independence and of our resolute focus on putting our clients at the centre of everything we do.”
Headquartered in London, Hyperion is a specialty commercial insurance broker and underwriting agency.
The insurance firm earned £535m of unaudited revenue for the financial year ended 30 September 2017.
CDPQ executive vice-president and private equity head Stephane Etroy said: “Hyperion has a very strong entrepreneurial culture that has consistently yielded superior organic growth.
“This transaction allows us to support the Group in its global growth strategy while at the same time benefiting from a stable and counter-cyclical industry, together with a high-quality partner who shares our long-term vision.”
Hyperion says that it will continue to pursuit selective acquisitions with a strong cultural fit for its growth strategy and claims to have various deals in the pipeline.
Post transaction, the current management and employees of Hyperion will continue to be the largest shareholder group in the insurance company. The closing of the transaction will be subject to regulatory consents.
Image: Hyperion Insurance secures an investment of over $400m from CDPQ. Photo: courtesy of stockimages/Freedigitalphotos.net.