Kohlberg & Company has acquired Risk Strategies Company (RSC), an insurance & benefits brokerage firm. Kohlberg invested in Risk Strategies Company through its new $1.6 billion fund, Kohlberg Investors VII, which closed in May 2013.
As part of the transaction, insurance industry executive Roger Egan has joined RSC as Executive Chairman. Mr. Egan brings 40 years of insurance brokerage experience in executive management and operations and as a director and investor in various companies and institutions across the insurance industry. He previously served as CEO of Integro, a commercial insurance brokerage, and spent more than 30 years in operating and executive management roles, including President, at insurance broker and risk adviser Marsh.
Risk Strategies Company is a national insurance & benefits brokerage and risk management firm. Customers include middle and upper-middle market commercial companies and high-net-worth individuals. RSC’s vertical industry expertise includes manufacturing, construction, social service, healthcare, higher education, private equity, private client and real estate. The company was founded in 1997 and is headquartered in Boston (www.risk-strategies.com).
RSC’s management and employees have retained a significant ownership interest in the company and its executive team, led by Chief Executive Officer and Founder Michael Christian, will remain with the company.
“Today Risk Strategies reaches a major milestone in our continued evolution as a national insurance brokerage industry leader,” said Mr. Christian. “With the support of our new partners, we will rapidly accelerate our plans to be a more powerful force in the brokerage arena. Kohlberg & Company’s track record of investment success and singular focus on value creation in the middle market makes them the ideal investment partner for Risk Strategies, and Roger Egan’s deep industry experience will be invaluable in our continuing development and implementation of our strategic growth plans. I look forward to working closely with Roger and Kohlberg to take our company to new heights.”
Kohlberg & Company is a control investor in a variety of industries including industrial manufacturing; consumer products; business services; healthcare services; and financial services. The firm concentrates on transactions with EBITDA between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg was founded in 1987 and is based in Mt. Kisco, NY (www.kohlberg.com).
“Risk Strategies has carefully and steadily grown organically and through thoughtful M&A to become one of the premier insurance brokerage firms serving the mid-market and upper mid-market during the past fifteen years,” said Mr. Egan. “I am excited about working with Michael Christian and his team as we seek to expand the firm’s national footprint, add resources, and build value for clients, partners and shareholders.”
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-28-13