Kohlberg Kravis Roberts & Co. has signed an agreement to acquire Alliant Insurance Services, a specialty insurance brokerage firm, from Blackstone. The management team and employees of Alliant own approximately 45% of the company and will roll over a substantial portion of their investment in the company. The transaction is expected to close in the fourth quarter.
Alliant Insurance Services is one of the largest insurance brokerage firms in the United States and has a history dating back to 1925. Alliant provides property and casualty, workers’ compensation, employee benefits, surety, and financial products and services to some 20,000 clients nationwide, including public entities, tribal nations, healthcare, energy, law firms, real estate, construction, and other industry groups. The company is headquartered in Newport Beach, CA (www.alliantinsurance.com).
“This transaction marks the next phase of Alliant’s growth and offers us an exciting opportunity to continue to build the business and offer best in class products and services to our clients. We are pleased to be partnering with KKR and appreciate the positive role that private capital can play in helping us manage our business and execute a growth strategy. This transaction will enable Alliant to remain independent and maintain its market leading position,” said Tom Corbett, Chairman and CEO of Alliant.
KKR makes private equity, fixed income and other investments in companies in North America, Europe, Asia and the Middle East. The firm has $66 billion in assets under management. In addition to its New York headquarters the firm has offices in Menlo Park, San Francisco, Houston, Washington DC, London, Paris, Hong Kong, Tokyo, Beijing, Mumbai, Dubai and Sydney (www.kkr.com).
“Alliant’s leadership team has built a unique insurance distribution franchise that is differentiated in its expertise, product offerings and client relationships. We are excited to partner with the Alliant team as it builds on the successful track record of product innovation, platform expansion and accretive acquisition activity in the specialty insurance marketplace,” said Tagar Olson, Member of KKR.
Blackstone’s private equity group comprises 129 professionals in New York, London, Germany, Mumbai, Singapore, Hong Kong, Shanghai and Beijing. The group currently has $47 billion in assets under management. Blackstone Capital Partners VI, Blackstone’s latest private equity fund, closed in January of this year with over $16 billion in commitments (www.blackstone.com).
JP Morgan Chase and Blackstone Advisory Partners served as advisers to Blackstone and Alliant on the transaction.
© 2012 PEPD • Private Equity’s Leading News Magazine • 11-26-12