Apax VIII, a fund advised by Apax Partners has agreed to sell its stake in AssuredPartners to Chicago-based private equity firm GTCR for an undisclosed amount.
Apax Partners expects the deal to close in the second quarter of this year.
Apax IX, a separate fund advised by Apax Partners will also buy a minority stake in the insurance company along with GTCR.
AssuredPartners’ management team will also retain its minority stake in the company.
AssuredPartners, a Lake Mary, Florida-based insurance brokers, was established in 2011 and is a large insurance broker in the US, distributing property and casualty (P&C), risk management, employee benefits and personal insurance. Presently, the company operates from 200 offices across 30 states, with one office in London, England.
Apax Partners partner Ashish Karandikar said: “Three and half years ago, we backed Jim Henderson and his team on an ambitious journey to build the preeminent US middle market insurance brokerage firm. Since then, AssuredPartners has charted an impressive growth trajectory through organic investments in sales and technology and through acquisitions to create a scaled product and service proposition to carriers and customers.
“We believe there continues to be exceptional opportunities for AssuredPartners and it’s over 5,000 talented and entrepreneurial insurance professionals and are excited to be continuing our journey.”
In 2011, GTCR helped in creating AssuredPartners with a view of establishing a middle market broker. Within four years of establishment, the insurance broker had completed 112 acquisitions and grew its annualized revenue to over $500m and is claimed to have built a platform to achieve long-term success.
In 2015, Apax VIII acquired majority stake in AssuredPartners. During this ownership, the company is claimed to have completed 124 acquisitions and has continued its organic growth through operational improvements. The impact of the improvements is doubling of revenue and earnings before interest, taxes and amortization (EBITDA).
AssuredPartners co-founder and CEO Jim Henderson said: “Apax has been a superb partner for Assured over the last three years and we are delighted to be renewing this successful partnership. At the same time, we are excited to welcome back the GTCR team who we know very well and value their expertise and insight. We look forward to working with both firms who share our vision and commitment to scaling the business further.”
GTCR stated that the investment in AssuredPartners follows two decades of its experience in investing in the insurance industry with past investments in insurance brokers such as Alliant Resources and AssuredPartners, specialty carrier Ironshore, premium finance provider Premium Credit Limited and software company Solera.