Alera will use the investment from Carlyle to support is growth and acquisition activities
The Carlyle Group through its Global Credit platform had invested $150m in Alera Group, a Deerfield, Illinois-based property and casualty, employee benefits insurance broker.
Alera is a private firm backed by Genstar Capital and Alera employees. Since its establishment in 2017, Alera is claimed to be one of the fastest-growing insurance brokers in the industry and has built a leading position through a diversified business model to support its clients.
The investment from Carlyle Group will be used by Alera to support its ongoing growth and acquisition activities.
Alera Group CEO Alan Levitz said: “Carlyle’s financial strength, experience in our industry and reputation for being a trusted partner to the companies in which it invests made them a logical choice for us as we added capital to continue the growth of our business.
“We look forward to working with Carlyle as we continue to create value for our clients, our employees and both our internal and external investors.”
Carlyle invested in Alera through its Global Credit, a $2.4bn fund
Carlyle Group’s Global Credit had invested in Alera from its Credit Opportunities Fund, a $2.4bn fund that closed last year. The fund is touted to invest in upper middle-market borrowers including both private equity sponsored and family or entrepreneur-owned companies.
Since its inception, the fund has invested $1.9bn and seeks to benefit from proprietary investment opportunities that originate from within the company and its global resources and operating expertise.
Carlyle Group illiquid credit strategies co-head and Carlyle’s credit opportunities team head Alex Popov said: “Alera is one of the fastest-growing insurance brokers in the country and we are pleased to provide the long-term capital it needs to continue building a best-in-class platform.
“We leveraged our expertise in insurance brokerage and an existing relationship with Genstar to structure a customised financing solution for Alera in an otherwise challenging economic environment.”
In June this year, Carlyle partnered with Oak Hill Capital to form Galway Insurance, a new diversified brokerage distribution and underwriting firm in the US.