PE HUB Wire Highlights, 5.14.19

Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

Clearlake’s Ivanti gets first round bids; Ardian wins process for $5B portfolio from Japan’s Norinchukin; Elder care investors need to think differently to catch boomer wave

Morning, Hubsters! How are you?

Today, we have an insurance deal from Lee Equity Partners, which is buying a majority of K2 Insurance Services. Financial terms weren’t announced but Endeavour Capital and Patrick Kilkenny, K2’s founder, are exiting. See our brief here.

K2 is a specialty insurance services holding company. The San Diego company owns and controls a group of managing general agents (MGAs) that serve the specialty property and casualty industry.

More insurance carriers look to MGAs to gain access to specialty product lines, said Mark Gormley, a Lee Equity partner. MGAs can better assess the risks and costs of specialized industries like bars and taverns, or ski resorts, because they often are more familiar with the sectors, he said. “It’s a pretty fragmented space,” Gormley said.

Private equity has always been active in insurance, but Blackstone appears to be taking this interest one step further. BX is seeking to build its insurance business into a powerhouse as it targets $1 trillion in assets, the Wall Street Journal reported. Blackstone already manages around $50 billion of fixed-annuity and other insurance assets. It wants to more than double that, the WSJ said.

We have more BX news this morning. Blackstone is investing 175 million euros ($196.6 million) in Superbet, a sports betting and gaming operator in Romania. See our brief here.

Blackstone and Hellman & Friedman have failed in their bid to buy Scout24Reuters reported. The 5.7 billion euros ($6.4 billion) offer from Hellman and BX failed to secure the required support of 50 percent of shares. Read the Reuters story here.


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