Amwins, an independent wholesale distributor of specialty insurance products, has completed a significant $1 billion recapitalization transaction with its existing shareholder group.
According to the firm, Dragoneer Investment Group, Genstar Capital, SkyKnight Capital, L.P., and employee shareholders (together, the investors), purchased $1 billion in equity from more than 375 Amwins employee shareholders and Public Sector Pension Investment Board (PSP). PSP also rolled 80% of their equity position forward.
Amwins noted that after the completion of the recapitalization transaction, the employee shareholder group will remain the largest single ownership group with approximately 40% ownership of Amwins.
The firm observed that this transaction marks a continuation of its philosophy of long-term employee and institutional ownership, “allowing for unique perpetuation of the company and ample liquidity opportunities for employee and institutional investors – all without the need for outside capital-raising efforts.”
Scott Purviance, Chief Executive Officer of Amwins, commented, “We were intentional in building a long-term capital structure with our current institutional investors and are excited to have this strategic group continue as our partners.
“As a private company, we believe in providing our shareholder base periodic opportunities for liquidity. Through the combination of dividends and sale opportunities, we have provided our shareholders with over $4.1 billion in liquidity since 2018.”
Purviance continued, “Having an existing shareholder base looking to increase their investment speaks to the stability and growth prospects for our business. Our shareholders’ long-term investment mindset uniquely positions us to focus on our clients and enhances our ability to execute our 150-year vision.”
Marc Stad, founder and Managing Partner of Dragoneer, Amwins’ largest institutional investor, said, “At Dragoneer, we’re focused on investing in exceptional companies run by great teams, so we are thrilled to increase our stake in Amwins, further solidifying our long-term partnership of almost a decade. Amwins’ best-in-class service and outstanding employee culture continue to differentiate the business, which is well positioned to continue its history of growth and success.”
Ryan Clark, President and Managing Partner of Genstar, added, “This is a win-win transaction for everyone involved, and we have enjoyed working alongside the management team and our shareholder partners to accomplish this liquidity event. Amwins’ all common equity capital structure is a unifying and aligned approach to institutional and employee ownership.”
Matt Ebbel, Managing Partner of SkyKnight, noted, “We have been partners with Amwins since 2016, and the long-term thoughtful approach to capital structure planning and liquidity aligns with Amwins’ business and operational philosophies. We are excited to continue the journey alongside them.”
