Apax VIII is to sell its entire stake in U.S. insurance brokerage AssuredPartners to an investor group led by Chicago-based GTCR, which actually owned the broker from its inception in 2011 before its sale to Apax VIII in 2015.
The deal reunites previous backer GTCR with AssuredPartners roughly four years after its sale to Apax VIII, a fund that is advised by global private equity advisory firm, Apax Partners.
The Apax VIII fund is to co-invest in the transaction with GTCR, taking a significant minority stake in AssuredPartners and, at the same time, it’s been announced that AssuredPartners’ management team retains its significant minority share in the business.
Since its inception in 2011, broker AssuredPartners has established itself as global insurance brokerage firm, based in Florida, U.S.
In 2015, Apax VIII bought a majority stake in AssuredPartners, and through its ownership, AssuredPartners delivered on its strategy of developing a leading broker through significant merger and acquisition (M&A) activity. In fact, the business has finalised 124 acquisitions while maintaining strong organic growth.
Co-Founder and Chief Executive Officer (CEO) of AssuredPartners, 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.”
While Tom Riley, Co-Founder, President and Chief Operating Officer (COO), AssuredPartners, added: “We have formed a partnership with agencies throughout the country and beyond through the partnership and support of GTCR and Apax Partners. Our acquisition strategy has allowed us to create something truly unique in our industry. The union of our two supporting entities joining forces makes for a very exciting future for AssuredPartners. We look forward to our continued success with Aaron Cohen and Ashish Karandikar and their respective winning teams.”
The Apax Funds is no stranger to investing in the insurance industry, currently investing in Duck Creek Technologies, and having previously invested in Hub International and Genex before successfully exiting both in 2013 and 2018, respectively.
Ashish Karandikar, Partner at Apax Partners, 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 its over 5,000 talented and entrepreneurial insurance professionals and are excited to be continuing our journey.”
And Managing Director of GTCR, Aaron Cohen, added: “We had an incredible experience working with the Assured team and have watched with admiration their continued success over the last three years. We want to congratulate the entire Assured organization on building a leading insurance broker with over $1 billion of revenue in just eight years. AssuredPartners is a trusted advisor to its customers, offering unique capabilities to assist leading companies in all of their insurance and risk management needs. We are thrilled to be partners with Jim Henderson, Tom Riley and the team once again and look forward to the continued expansion of the AssuredPartners platform.”
