Ares Management Corporation, a leading global alternative investment manager, is serving as the lead arranger for a £1.875 billion financing commitment to The Ardonagh Group, the largest independent insurance broker in the UK.
The Ardonagh Group was established in 2017 and expanded significantly the following year through numerous acquisitions. The company is majority owned by HPS Investment Partners and Madison Dearborn Partners.
In addition to direct lending funds managed by Ares through its global direct lending platform, other significant lenders include Caisse de dépôt et placement du Québec (CDPQ), HPS, and KKR.
An announcement on the arrangement reveals that the financing is comprised of a £1.575 billion unitranche loan and a £300 million committed capital expenditures facility. Reportedly, the combined £1.875 billion commitment is the largest ever unitranche financing. The financing will be part of the company’s global refinancing to support its business expansion plans.
Blair Jacobson, Partner and Co-Head of European Credit and Mark Affolter, Partner and Co-Head of U.S. Direct Lending, said: “We believe this is the largest ever unitranche financing transaction globally, which is a testament to the quality of The Ardonagh Group, our long-standing relationships with HPS Investment Partners and Madison Dearborn Partners and the advantages created by our global and scaled platform.
“We believe there is a significant need in the current market to serve as a partner to companies in need of scaled financial solutions and are excited to support Ardonagh in realizing its growth ambitions.”
Luis Mayans, Partner and Deputy Head, Private Debt at CDPQ, commented: “This is a major transaction for the lending group in Europe. It will support Ardonagh’s growth over the coming years. Over the years, Ardonagh has developed an attractive business model by bringing together specialized insurance brokerages that are leaders in their respective niches, and we’re pleased to offer them a financial solution that meets their needs.”
While David Ross, Chief Executive Officer (CEO) of The Ardonagh Group, added: “The substantial commitment from this lending group led by Ares is a vote of confidence in Ardonagh and our management team. The structure of the unitranche facility and additional committed capital expenditures facility leave us well positioned to deliver the next phase of our growth strategy and beyond.”
