AssuredPartners, a portfolio company of GTCR and one of the largest independent insurance brokerage firms in the United States, has entered into an agreement to be acquired by Apax Partners. Under the agreement, Apax will hold a majority interest in the company, while members of Assured’s senior management team will continue to have a significant equity position. GTCR formed AssuredPartners in July 2011 to consolidate the independent insurance brokerage industry.
“We have been following Assured closely since its inception and have been impressed with the strategy and vision articulated by the management team,” said Mitch Truwit, Co-CEO of Apax. “We are excited to back the company as it pursues its next phase of growth.”
AssuredPartners acquires and invests in insurance brokerage businesses (property and casualty, employee benefits, surety, managing general agencies, and wholesalers) across the United States and in the UK. From its founding in 2011, AssuredPartners has acquired 101 insurance brokerages and today has approximately $500 million in annual revenue with more than 100 offices in 30 states. The co-founders of Assured – CEO and Chairman Jim Henderson, President and Chief Operating Officer Tom Riley – will continue to lead the company under Apax ownership. The company is headquartered north of Orlando in Lake Mary, FL (www.assuredptr.com).
Apax invests in the technology & telecom; retail & consumer; healthcare; and financial & business services sectors. The firm has eight offices located in London, New York, São Paulo, Munich, Tel Aviv, Mumbai, Hong Kong and Shanghai (www.apax.com).
“Over the past four years, Assured has emerged as a partner of choice for highly successful local and regional agencies. In today’s complex environment, with challenges ranging from rapidly changing healthcare regulation to cybercrime, customers need the advice of a trusted insurance broker more than ever,” said Ashish Karandikar, Partner at Apax.
GTCR pioneered the investment strategy of identifying and partnering with executives to acquire and build companies through a combination of acquisitions and internal growth. The firm currently has nearly $11 billion in assets under management. Since its inception in 1980, GTCR has invested more than $10 billion in over 200 companies. The firm is based in Chicago (www.gtcr.com).
“GTCR is proud to have supported the Assured management team since the formation of the business. The successful partnership with Jim and Tom and the entire team is a testament to their ability to build a leading national broker,” said GTCR Managing Director Aaron Cohen. “Their M&A acumen and operational excellence have driven an impressive record of success.”
“We look forward to our partnership with the Apax team as we pursue the next chapter in our vision to build one of the leading middle market retail insurance brokerage firms in the nation by partnering with successful regional and local agencies,” said Mr. Henderson.
Debt financing for this transaction has been committed to by BofA Merrill Lynch, RBC Capital Markets and Morgan Stanley Senior Funding.
BofA Merrill Lynch served as lead financial advisor to Assured and GTCR with Barclays and Morgan Stanley & Co. also serving as financial advisor. Kirkland & Ellis provided legal counsel to Assured and GTCR. Simpson Thacher & Bartlett served as legal counsel to Apax.
The transaction is expected to close in the third quarter of 2015.
© 2015 PEPD • Private Equity’s Leading News Magazine • 7-20-15