The Carlyle Group agreed to acquire a majority stake in wholesale insurance broker JenCap Holdings LLC and the assets of Wholesale Trading Co-Op Insurance Services, which will be re-named Wholesale Trading Insurance Services LLC. Wholesale Trading is currently owned by its management team and external private investors. Financial terms of the deal were not disclosed. The deal positions JenCap, which will be based in New York, to be a consolidator of specialty insurance distribution and services businesses.
New York – Global alternative asset manager The Carlyle Group (Nasdaq: CG) today announced that it has agreed to acquire a majority stake in wholesale insurance broker JenCap Holdings, LLC and the assets of Wholesale Trading Co-Op Insurance Services, which will be re-named Wholesale Trading Insurance Services, LLC. Wholesale Trading is currently owned by its management team and external private investors.
Carlyle’s acquisition will position JenCap Holdings to be a consolidator of specialty insurance distribution and program management businesses, including managing general agencies, specialty program underwriters, transactional wholesale brokers and captive managers. JenCap Holdings has assembled a management team with the sector insight and experience to drive organic growth and strategic acquisition strategies leveraging technology and advanced data analytics.
Following the acquisition, John F. Jennings, current President and Chief Executive Officer of Wholesale Trading, will be named President and CEO of JenCap Holdings. Kristopher Bauer, a founding member of Wholesale Trading and co-head of its Casualty Practice, will be named President of Wholesale Trading Insurance Services. JenCap Holdings will be headquartered in New York and Wholesale Trading will continue to operate from offices in New York, San Francisco, Atlanta and Princeton, New Jersey.
Mr. Jennings commented, “As a start up, over the last five years we have built a successful business from scratch through hard work and client service. However, it is clear to us the next five years will require significant investments in technology, data analytics, human capital and acquisitions to expand product offerings and distribution networks. The Carlyle Group as our financial partner provides us the ability to make those investments, attract the best talent both inside and outside the industry and immediately set us apart from our competitors.”
“We are very pleased that John Jennings and the exceptionally talented professionals who started Wholesale Trading will be joining JenCap Holdings,” commented John Redett, Managing Director of The Carlyle Group. “John and the entire WTCI team have done a tremendous job building the organization from a start-up, creating a high-growth, client-focused organization in only five years. We look forward to making the necessary investments for the WTCI team and JenCap Holdings to quickly become a significant player in the specialty insurance distribution and service business.”
Equity capital for the transactions, financial terms of which were not disclosed, will be provided by Carlyle Global Financial Services Partners II. The transactions are expected to close by mid-March.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $183 billion of assets under management across 126 funds and 160 fund of funds vehicles as of December 31, 2015. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,700 people in 36 offices across six continents.